September 2026 Labour Market Update: Unemployment Rises as Recruitment Continues

September’s labour market data presents a mixed picture for Durham. Employment in the Oshawa Census Metropolitan Area (CMA) declined from August, unemployment increased, and a smaller share of the working-age population participated in the labour force. At the same time, Jobs First Durham recorded more active job postings and more employers recruiting across the region.

Drawing on Durham Workforce Authority’s Labour Force Report, Employment by Industry report and Jobs First Durham (JFD) data, this update examines overall employment conditions, changes across industries and the opportunities employers are advertising.

Unemployment rises as employment and participation decline

The Oshawa CMA, which includes Oshawa, Whitby and Clarington, recorded 256,400 employed residents in September, down 3,100 from August. The number of unemployed residents increased by 800 to 28,000, bringing the unemployment rate to 9.8 per cent, up from 9.5 per cent the previous month.

The labour force—the combined number of employed and unemployed people—declined by 2,300 to 284,400. Meanwhile, people outside the labour force increased by 3,300 to 130,000.

These changes were reflected in two other key indicators:

  • The employment rate, which measures the proportion of the population aged 15 and older who are employed, fell from 62.8 to 61.9 per cent.
  • The participation rate, which measures the proportion working or participating in the labour market as unemployed job seekers, fell from 69.4 to 68.6 per cent.

The data does not explain why people left the labour force. However, the combination of lower employment, higher unemployment and declining participation points to softer local labour market conditions in September.

The report places the Oshawa CMA’s unemployment rate above the provincial rate of 6.8 per cent and the national rate of 6.2 per cent. Its employment and participation rates nevertheless remained above both Ontario and Canada, illustrating why several indicators are needed to understand labour market conditions.

Annual employment growth has not kept pace with population growth

Despite September’s monthly decline, employment remained 3,100 higher than in September 2025. Over the same period, the population aged 15 and older covered by the report increased by 11,400.

As a result, more residents were employed than a year earlier, but a smaller proportion of the population was working. The employment rate declined from 62.9 to 61.9 per cent, while the unemployment rate increased from 9.5 to 9.8 per cent.

This distinction matters: growth in the number of employed people does not necessarily mean employment opportunities are keeping pace with a growing population.

Industry trends show different experiences across the economy

Wholesale and retail trade remained the Oshawa CMA’s largest industry group, employing 38,500 people. Employment rose by 1,400 from August and by 3,200 from September 2025.

Finance, insurance, real estate, rental and leasing also recorded gains, reaching 25,000 employed people, up 700 from the previous month and 3,100 year over year.

Other annual increases included:

  • Transportation and warehousing: up 2,500 to 14,000.
  • Accommodation and food services: up 1,900 to 13,900.
  • Professional, scientific and technical services: up 1,800 to 22,300.

Several major industries recorded lower employment than a year earlier. Educational services declined by 8,300 to 18,100, while manufacturing fell by 3,800 to 15,700. Health care and social assistance employed 28,200 people, down 2,100 year over year despite a small monthly increase of 100. Public administration declined by 1,600 to 14,800.

These results show that the overall employment total reflects different conditions across industries, with growth in some areas alongside declines in others.

Job postings increased, although new postings edged down

Across Durham Region, Jobs First Durham recorded 6,208 active job postings in September, up five per cent from August. The number of companies advertising positions also increased five per cent to 2,357.

However, new job postings declined one per cent to 3,966. The increase in active postings therefore should not be interpreted as an equivalent increase in newly advertised opportunities: active postings include advertisements carried over from an earlier period.

Of September’s active postings, 4,318 were classified as full-time, approximately 70 per cent of the total. Separately, 5,137 were classified as permanent, approximately 83 per cent.

Oshawa accounted for the largest municipal posting count at 1,899, followed by Whitby with 1,268, Pickering with 1,013, Ajax with 942 and Clarington with 550.

Retail employment growth is accompanied by recruitment activity

Retail featured prominently in both the employment and job-posting reports.

Alongside the increase in wholesale and retail employment, JFD recorded 358 postings for retail salespersons and visual merchandisers, making this the most frequently advertised occupation in September. Store shelf stockers, clerks and order fillers accounted for another 213 postings.

Food counter attendants, kitchen helpers and related support occupations also ranked highly, with 217 postings, while material handlers accounted for 162.

These posting counts provide additional detail about the types of roles employers were seeking to fill, complementing the broader industry employment estimates.

Lower industry employment does not mean recruitment has stopped

Education illustrates why employment totals and job postings need to be considered together.

Although educational services employment in the Oshawa CMA was below September 2025 levels, JFD recorded 320 postings associated with elementary and secondary schools across Durham Region. The Durham District School Board accounted for 196 postings and the Durham Catholic District School Board for 89. Secondary school teachers were among the most frequently advertised occupations, with 172 postings.

Similarly, health care and social assistance remained a major source of employment and recruitment despite its annual employment decline. Community care facilities for the elderly accounted for 198 active postings in September.

Construction also featured in recruitment activity. The industry employed 21,500 people in the Oshawa CMA, while JFD recorded 199 postings associated with industrial building and structure construction. Aecon Group Inc. was among the leading employers by posting count, with 194 advertisements.

Recruitment can occur as employers replace departing staff, fill temporary positions or expand particular operations, even when employment across an industry is declining. The reports do not establish the reasons behind individual employers’ hiring activity.

Communication and customer service remain prominent requirements

JFD’s report also identifies skills appearing in job advertisements. Communication was the most frequently identified skill, appearing in 2,473 postings, followed by management in 2,163 and customer service in 1,829. Driving and sales rounded out the top five.

For job seekers, these findings highlight the value of clearly demonstrating relevant skills alongside qualifications and work experience. For employment service providers and educators, they offer additional information to support job-search preparation and training discussions.

What September’s findings mean for workforce planning

September’s results show a labour market in which rising unemployment exists alongside continued recruitment. Employers are advertising positions, but that activity has not translated into an increase in overall employment compared with August.

For job seekers, industry declines do not eliminate opportunities within individual organizations. For employers and community partners, the findings reinforce the importance of examining specific occupations, qualifications and recruitment needs alongside headline employment figures.

DWA’s reports provide complementary perspectives. The Labour Force and Employment by Industry reports describe employment among Oshawa CMA residents, while JFD captures online recruitment activity across the broader Durham Region. Together, they support more informed conversations about employment services, skills development and workforce planning.

Explore DWA’s September Labour Force Survey Report, Employment by Industry Report and Jobs First Durham Labour Market Insights Report reports for more detail.

About the data: The Statistics Canada figures used in these reports are not seasonally adjusted, and the Employment by Industry figures are three-month moving averages. Seasonal patterns and sampling variability should be considered when interpreting changes. JFD draws on advertisements from more than 50 publicly accessible websites; postings do not represent completed hires, necessarily correspond to a single vacancy or capture every employment opportunity. The sources also differ in geographic coverage and should not be treated as directly equivalent measures.