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Economic News

Quebec: A Little Relief for Employment in October, but Barely

November 6, 2026
Nom du rédacteur
Sonny Scarfone
Principal Economist

Highlights

  • Employment rose by 7,500 in Quebec in October, following losses totalling about 68,000 over the previous two months (table). The province’s unemployment rate fell from 6.0% to 5.7%, while the labour force declined for a third consecutive month (graph 1).
  • The gain was almost entirely in part-time employment (+7,000), while full-time employment was essentially unchanged (+500). Hours worked fell 4.7% year-over-year.
  • Construction (+7,900) and wholesale and retail trade (+7,600) posted the largest gains, while information, culture and recreation (‑9,300) and manufacturing (‑6,700) recorded the largest declines.
  • Despite October’s respite, Quebec has 119,200 fewer jobs than at the beginning of the year. Other indicators, however, paint a less gloomy picture of the labour market than the Labour Force Survey (LFS), a divergence we will revisit in an analysis to be published later today.

Comments

After two particularly difficult months, Quebec’s labour market regained some ground in October. The 7,500‑job gain provided some relief, but barely, following the steep losses of recent months External link.. It is still too early to call this a genuine recovery.

The details also paint a mixed picture. Private sector employment edged lower and remains under pressure (graph 2). Manufacturing lost 6,700 jobs in October and 25,600 since the beginning of the year, a notable weakness amid renewed trade tensions this fall. These figures may also understate the adjustment underway, as businesses can reduce hours worked to avoid layoffs, as appears to be happening across the broader economy.

The decline in the unemployment rate also reflects a shrinking labour supply. As we noted last month, the participation rate had already fallen to its lowest level since 2001 before declining again in October. This contraction is consistent with Quebec’s well-documented demographic slowdown. The population aged 15 to 64 is now down about 1% year-over-year (graph 3).

Implications

The October data provide a little relief, but barely. They are not enough to erase the weakness of recent months or signal a genuine recovery.

This weakness must also be viewed in the context of a rapidly changing demographic landscape. With the working-age population now contracting, far fewer jobs, if any, will be needed than in recent years to stabilize the unemployment rate. Against this backdrop of an ageing workforce, it is also not surprising to see part-time work account for a growing share of employment, particularly as more workers approach retirement or transition into it gradually.

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.