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Economic News

Quebec: Nearly 20,000 Jobs Lost in August

September 4, 2026
Florence Jean-Jacobs
Principal Economist

Highlights

  • Quebec recorded a net loss of 18,500 jobs in August, in contrast with the gains posted over the previous three months (graph 1). This setback brings cumulative job losses since the beginning of 2026 to 77,300. (See table for details).
  • The unemployment rate remained unchanged at 5.6% as the participation rate declined.
  • The employment rates for youth aged 15 to 24 and for the core working-age population, which includes people aged 25 to 54, fell from July.
  • Modest gains outside the Montreal census metropolitan area (CMA) were insufficient to offset the 21,000 jobs lost in the region in August.
  • Compared with a year earlier, Quebec has 54,000 fewer jobs (‑1.2%), making it the only province to post a decline over the past 12 months.
  • Healthcare recorded the largest decline in employment (‑20,300), followed by wholesale and retail trade. Despite holding steady in August, the manufacturing sector, which is highly exposed to tariffs, has 21,800 fewer jobs than at the end of 2025.
  • Accommodation and food services continue to show resilience in job creation, while domestic tourism External link. had a strong summer.

Comments

The August Labour Force Survey once again points to weakness in Quebec’s labour market, consistent with our expectations that the economy will come close to stalling in the second half of the year. Hours worked are down from a year ago, and employment has declined across all major categories since the beginning of the year: the public and private sectors, self-employment, and full- and part-time positions. The private sector has shed 40,500 jobs, including nearly 17,000 in August alone. Although the unemployment rate remained unchanged, this stability reflects a shrinking labour force. The population aged 15 and over continues to decline, while the population aged 15 to 64 is now 1.4% below its August 2025 level (graph 2).

From a sectoral perspective, the three-month moving average continues to point to weakness in the goods-producing sector, while services-producing industries are generally faring better. In manufacturing, which accounts for more than 10% of employment in Quebec, US tariffs External link. in effect since August 22 are likely to slow hiring further and could even result in job losses in the most exposed subsectors, including wood and paper products, plastics, chemicals, and machinery and equipment. While construction employment has been weak this year, the sector could also face higher costs if Canada’s retaliatory tariffs take effect as scheduled on September 8.

Developments in the trade war will be critical to the outlook, but demographic trends will continue to weigh on economic growth in the months ahead.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.