September Labour Force Snapshot: Unemployment Rises in the Oshawa CMA

Tuesday, October 13th, 2026

The Oshawa Census Metropolitan Area (CMA) experienced softer labour market conditions in September, with employment declining, unemployment increasing and fewer residents participating in the labour force.

Durham Workforce Authority’s September Labour Force Report, based on Statistics Canada data, recorded 256,400 employed residents across Oshawa, Whitby and Clarington. This was a decrease of 3,100 from August, although employment remained 3,100 higher than in September 2025.

The results highlight the importance of looking beyond employment totals to understand how the labour market is changing.

Unemployment reaches 9.8 per cent

The number of unemployed residents increased by 800 to 28,000 in September. The unemployment rate rose to 9.8 per cent, up from 9.5 per cent in August and September 2025.

The unemployment rate measures the share of the labour force who are unemployed. Its increase means a greater proportion of people participating in the labour market were without employment.

September also continued a recent upward trend. The unemployment rate increased from 8.5 per cent in June to 8.8 per cent in July, 9.5 per cent in August and 9.8 per cent in September. Over the same period, employment declined from 261,200 to 256,400.

These figures suggest that the challenges facing job seekers have increased in recent months, although the data does not explain the reasons behind the changes.

Fewer residents participated in the labour force

The labour force—the combined number of employed and unemployed people—declined by 2,300 to 284,400 in September.

Meanwhile, the number of residents outside the labour force increased by 3,300 to 130,000. These residents are neither employed nor classified as unemployed.

The participation rate fell from 69.4 per cent in August to 68.6 per cent in September. It was also below the 69.5 per cent recorded a year earlier.

People may be outside the labour force for many reasons, including education, retirement, caregiving or illness. The report does not identify what drove September’s change, so the decline should not automatically be interpreted as people giving up their job searches.

Employment growth has not kept pace with population growth

Compared with September 2025, the Oshawa CMA had 3,100 more employed residents. However, the population aged 15 and older covered by the report grew by 11,400, reaching 414,400.

This helps explain why the employment rate declined despite the annual increase in employment. In September, 61.9 per cent of residents aged 15 and older were employed, compared with 62.9 per cent a year earlier.

The employment rate also fell from 62.8 per cent in August, a monthly decrease of 0.9 percentage points.

In practical terms, more people were working than a year ago, but employment growth had not kept pace with growth in the population. The number of unemployed residents increased by 1,300 over the year, while the number outside the labour force increased by 7,000.

How the Oshawa CMA compares with Ontario and Canada

The September report places the Oshawa CMA’s unemployment rate above both the provincial and national rates. However, its employment and participation rates remained higher.

September indicator	Oshawa CMA	Ontario	Canada
Unemployment rate	9.8%	6.8%	6.2%
Employment rate	61.9%	59.9%	60.6%
Participation rate	68.6%	64.3%	64.6%

These measures describe different aspects of the labour market. A larger share of the Oshawa CMA’s population was participating in the labour force than in Ontario or Canada overall, but a larger share of that labour force was unemployed.

This is why the unemployment rate is most useful when considered alongside employment and participation rates.

What September’s results tell us

September’s findings point to increased pressure in the local labour market. Employment declined from August, the number of unemployed residents rose and participation fell. While employment remained above its level a year earlier, a smaller share of the population was working.

For employment service providers, educators, employers and community partners, these trends provide useful context for discussions about job-search support, access to employment and workforce development. Further information about industries, occupations and residents’ experiences is needed to understand the factors behind the changes.

Durham Workforce Authority’s Labour Force Report helps track these conditions over time, supporting informed planning and a clearer understanding of the local economy.

Explore the September 2026 Labour Force Report for the full findings and historical trends.

About the data: This update covers the Oshawa Census Metropolitan Area, which includes Oshawa, Whitby and Clarington, rather than all of Durham Region. Figures are drawn from Statistics Canada’s Labour Force Survey and are not seasonally adjusted. Seasonal patterns and sampling variability should be considered when interpreting changes. Changes between rates are expressed in percentage points.