Canada lost 68,000 jobs in September. If your income drops, here's what to do about your debts.

Employment in Canada fell by 68,000 in September, Statistics Canada reported on Oct. 9, the second consecutive monthly decline. Unemployment edged up to 6.5%, a rise of 0.1 percentage points.

Those are national figures, and most households will not notice a 0.3% change in the total. But for the people on the wrong side of it, the more urgent question is practical: what happens to the car loan, the line of credit and the credit cards if a paycheque stops?

What the September jobs report showed

According to the Labour Force Survey, employment dropped by 68,000 (-0.3%) to 21,105,000. The employment rate fell 0.2 points to 60.6%.

The losses were concentrated among young workers and women aged 25 to 54:

• Employment among people aged 15 to 24 fell by 48,000, the second straight monthly drop. The youth unemployment rate was 13.0%.
• Employment among women aged 25 to 54 fell by 28,000.
• By industry, educational services lost 35,000 jobs, health care and social assistance lost 23,000, and manufacturing lost 13,000.
• By province, Quebec (-49,000) and British Columbia (-20,000) saw declines, while Alberta gained 23,000.

Average hourly wages rose 2.3% from a year earlier, to $37.64. Statistics Canada also noted that the labour force participation rate fell to 64.8%, its lowest level since December 1997 outside of 2020, and attributes much of the year-over-year decline to population aging.

Household balances were already heavy

The jobs data lands on top of debt that was already elevated. TransUnion’s Q2 2026 report, released Aug. 25, found:

Average balances rose fastest on auto loans (+7.9%) and lines of credit (+7.4%). TransUnion also reported that 99.7% of mortgage holders were paying on time.

Why a drop in income matters so much

The Office of the Superintendent of Bankruptcy’s debtor profile for 2024 found that loss of income was the most-cited cause of insolvency, at 45%. That is not a prediction about anyone who lost work in September. It does show how often an interruption in income, rather than spending habits, is the starting point for serious debt problems.

The risk is usually not the first missed paycheque. It is the months that follow, when credit cards and lines of credit fill the gap, interest compounds and the balance becomes harder to bring down.

What this means for you

If your hours were cut or you lost a job, these steps are worth considering. They are general, not advice for your situation.

• Contact lenders before you miss a payment. Many lenders have hardship programs, and it is generally easier to arrange them before an account is past due.
• List what is essential. Housing, utilities, food, transportation to work and insurance usually come before unsecured debts such as credit cards.
• Avoid plugging the gap with high-cost borrowing. Payday loans and cash advances can turn a short-term shortfall into a long-term one.
• Check what income support you may be eligible for, such as Employment Insurance or provincial programs, and apply promptly.
• Ask a professional about structured options. Non-profit credit counselling and Licensed Insolvency Trustees can explain how debt management plans, consumer proposals and other options work, and which may fit if your income is lower for a while.

The September numbers are one month of data and may be revised. If your own income has changed, though, the time to look at your debts is now rather than after the credit limits are used up.

Adam Fisher is a Licensed Insolvency Trustee and CIO of Harris & Partners Inc.