Canada Loses 68,000 Jobs; Thunder Bay’s Lower Jobless Rate Masks Smaller Workforce
Local employment held steady in the latest three-month average, while federal rail investment offers a manufacturing opportunity
THUNDER BAY — Canada lost 68,000 jobs in September, Statistics Canada reported on October 9, 2026. In Thunder Bay, the latest figures offer a more complicated picture: the unemployment rate declined, but the estimated number of people working held steady. www150.statcan.gc.ca
Thunder Bay’s lower rate needs context
The Thunder Bay census metropolitan area’s unemployment rate fell to 4.3 per cent in the three-month average ending in September, from 4.7 per cent in the average ending in August.
Employment remained at an estimated 66,600 people. The labour force — people working or actively seeking work — declined from 69,900 to 69,600.
Those figures help explain the lower unemployment rate: the workforce became smaller while employment stayed level. Compared with a year earlier, the employment estimate was down by 1,100 people, or 1.6 per cent.
These are seasonally adjusted, three-month averages for the metropolitan area, rather than standalone September counts for the city. They should not be treated as a direct month-for-month comparison with the national headline.
National losses hit young workers and major service sectors
Across Canada, September’s decline followed a loss of about 42,000 jobs in August. The national unemployment rate rose to 6.5 per cent from 6.4 per cent.
Youth aged 15 to 24 accounted for a decline of 48,000 in employment. By industry, employment fell by 35,000 in education, 23,000 in health care and social assistance, and 13,000 in manufacturing.
Ontario employment edged down by 20,000, while its unemployment rate was little changed at 7.0 per cent.
The national industry figures do not establish that Thunder Bay employers made similar cuts. They describe changes across Canada.
The Conservative Opposition places the blame directly on the governing Liberals. “Conservatives will fight for you,” Poilievre wrote in a message to Canadians affected by the reported decline. “Our Economic Action Plan will boost hiring and save jobs.”
Rail investment gives Thunder Bay a concrete opportunity
The national manufacturing decline comes just over a month after Ottawa announced a major rail investment involving Thunder Bay’s Alstom plant.
On September 3, Prime Minister Mark Carney announced more than $4.7 billion for VIA Rail to acquire and maintain 313 passenger cars from Alstom Canada. Manufacturing and assembly will take place in Thunder Bay and La Pocatière, Quebec, with design and engineering work in Saint-Bruno-de-Montarville, Quebec.
The federal government says the investment will support nearly 700 jobs across Ontario and Quebec. That is a combined figure, rather than a Thunder Bay hiring total.
Local analysis: The rail program provides a documented opportunity for Thunder Bay manufacturing. Its effect on overall employment will depend on when work proceeds and how staffing changes. The September survey does not measure jobs attributable to the contract.
