Both full-time and part-time positions declined, by 0.2% and 0.9% respectively. Public sector employment contracted by 70,000, extending its downturn for a fourth straight month, while private sector employment was essentially unchanged for the second month in a row. Self-employment also slipped, down by 23,000.

Youth employment fell by 48,000, registering its second consecutive monthly decline.

Across industries, employment decreased in educational services (-2.2%), health care and social assistance (-0.8%), and manufacturing (-0.7%). Provincially, the largest losses occurred in Quebec (-1.1%), British Columbia (-0.7%), and Manitoba (-0.6%).

The overall employment rate edged down to 60.6% from 60.8% in the previous month. Despite the short-term weakness, employment was still up 95,000, or 0.5%, compared with a year earlier.

The number of unemployed people increased by 15,400 to 1.475 million, even as the labor force participation rate fell by 0.2 percentage points to 64.8%—its lowest level since 1997, excluding the initial COVID-19 shock. Among core-aged workers, the unemployment rate for women rose by 0.3 percentage points to 5.3%, offsetting a 0.2 percentage point decline for men, to 5.8%.

The uptick in the headline unemployment rate coincided with an unexpected net employment decline of 68,300 jobs, in contrast to forecasts that had pointed to a modest increase in employment.

The easing in participation may suggest a modest pullback in labour supply after previous resilience, and will be closely watched by policymakers and investors for signs of shifting momentum in Canada’s job market and broader economic activity. With participation still hovering near recent levels, the September drop is small in absolute terms but could signal emerging caution among households amid evolving economic conditions.

The September figures suggest mounting pressure in Canada’s more flexible segment of the labor market, where part-time roles often serve as an entry point for younger workers, a bridge for those between full-time positions, or a cushion during periods of economic uncertainty. The steepening downturn from August to September may raise concerns among policymakers and investors about underlying demand for labor and potential spillovers into overall employment and consumer spending.

While the data only covers part-time employment, the trend over these two months will likely draw closer scrutiny from markets watching for signs of broader weakness in Canada’s labor conditions and the possible implications for future economic policy.

The back-to-back negative readings highlight ongoing softness in Canada’s employment landscape, with businesses still cutting full-time positions as economic conditions remain challenging. While the marginal improvement from -35.9K to -35.4K suggests some stabilization, the persistently negative figures underscore that any recovery in the full-time jobs market has yet to gain traction.

Market participants and policymakers are likely to watch upcoming labor releases closely to assess whether September’s slightly smaller decline marks the beginning of a gradual improvement or simply a pause in a broader weakening trend.

While the increase is relatively small, the move from 2.0% to 2.3% annual growth indicates that wage pressures may be building at the margin. For policymakers and investors, the latest wage figures will be closely watched as a key input into assessments of household purchasing power and potential domestic inflationary pressures in the months ahead.

The September uptick also provides an additional signal for businesses planning labor costs and for workers negotiating pay, as even incremental gains in hourly wages can influence consumer spending patterns and broader economic momentum across Canada’s regions and sectors.

The 0.1 percentage point increase, while slight, indicates that more Canadians were actively seeking work in September and unable to find it. The move higher continues to place the jobless rate above levels seen earlier in the recovery phase, underscoring ongoing challenges in fully absorbing workers into the labour market.

Analysts and policymakers will be watching subsequent releases closely to determine whether the September uptick is a temporary fluctuation or an early sign of a more persistent cooling in employment momentum across the country.

The back-to-back monthly losses suggest growing strain in Canada’s job market as the economy adjusts to current conditions. The sharper contraction in September indicates that the slowdown is not only persisting but accelerating, raising concerns about household income resilience and the broader outlook for domestic demand.

With employment now having declined for two consecutive months, investors and policymakers will be closely watching upcoming labor data for signs of whether this is the start of a more prolonged downturn in hiring or a temporary correction in the Canadian job market.

On the policy front, St. Louis Fed President Alberto Musalem said on Thursday that additional monetary tightening may still be necessary to return inflation to the central bank’s 2% target, though he declined to indicate how he might vote at this month’s FOMC meeting. According to the CME FedWatch Tool, futures markets were pricing in less than a 20% probability of a rate increase in October, but better than an 80% chance of at least one 25-basis-point hike by December.

Transport inflation, in particular, was boosted by higher vehicle fuel prices, which rose 4.97% after a 4.41% gain in August, reflecting the impact of surging international oil prices amid heightened tensions in the Middle East.

In contrast, price growth eased in housing (4.22% vs. 4.90%), health and personal care (5.75% vs. 5.84%), personal expenses (5.90% vs. 6.16%) and education (5.95% vs. 5.98%).

On a monthly basis, consumer prices increased 0.82% in September, rebounding from a 0.32% decline in August. So far this year, inflation has reached 3.95%.

Chipmakers led the advance as investors looked past speculative risks, dismissing worries over a report that OpenAI’s revenue may fall short of earlier projections. Broadcom, Micron, Marvell, AMD, and Lam Research each gained more than 2% in premarket trading. On the software side, Amazon, Alphabet, and Meta added roughly 1% apiece.

The sector also drew additional support from news that SoftBank is seeking to raise $100 billion from Gulf investors to fund new AI initiatives. At the same time, more traditional sectors found relief as long-term Treasury yields retreated from multi-decade highs. US President Donald Trump indicated that the United States would not strike Iran before next month’s midterm elections, easing energy prices and tempering inflation expectations.

The month-over-month comparison shows inflation shifting from a brief period of negative price dynamics in August to a solid positive increase in September. While August’s -0.24% reading suggested temporary disinflationary pressure, the September gain of 0.88% indicates a renewed pickup in consumer prices, underscoring a more volatile near-term inflation path for Brazil.

With the latest figures, markets and policymakers will be closely watching whether September’s jump proves to be a one-off correction after August’s dip or the start of a firmer upward trend in Brazil’s inflation trajectory on a month-over-month basis.

In August 2026, the CPI had registered a -0.32% month-over-month change, signaling falling prices compared with July. That trend did not persist: in September, prices not only stabilized but climbed noticeably, with the 0.82% month-over-month reading indicating renewed inflationary momentum in the Brazilian economy.

The comparison is based on month-over-month changes: the “actual” figure reflects the shift in prices from August to September 2026, while the “previous” value captures the change from July to August 2026. The move from negative to clearly positive territory will likely draw close attention from investors and policymakers watching Brazil’s inflation trajectory into the final quarter of the year.

Both the current and previous readings are calculated on a year-over-year basis, comparing each month’s price levels to those of the corresponding month in the prior year. The move from 4.22% in August to 4.58% in September indicates that inflationary pressures have strengthened, potentially reinforcing the perception that price dynamics remain a central concern for policymakers and market participants in Brazil.

While the data release does not specify the reasons for the drawdown, such movements in reserves typically reflect a combination of factors, including central bank interventions in the foreign exchange market, valuation changes in reserve assets, and shifts in global financial conditions. The latest reading will likely be watched closely by investors and policymakers as an indicator of India’s external buffers and its capacity to manage currency and balance-of-payments pressures.

The change in reserves may also feed into broader market sentiment around India’s macroeconomic stability, with any sustained trend in depletion potentially influencing expectations for monetary policy, exchange rate dynamics, and capital flows in the coming months.

The 0.5 percentage-point rise in the deposit growth indicator suggests continued confidence in the formal financial system and resilient savings behavior among households and businesses. The increase may also reflect higher interest rates on deposits or a shift of funds from riskier assets into bank accounts, though no detailed breakdown was provided.

With deposit growth remaining firmly in double digits, Indian banks retain a strong funding base to support credit expansion, a key factor for sustaining economic activity in the months ahead.

The uptick in loan growth suggests that financial conditions remain supportive and that lenders are actively extending credit, a key driver for investment and consumption. The move from 18.1% to 19.4% marks a notable increase in momentum, and will likely be closely watched by policymakers and market participants assessing the pace and sustainability of India’s economic expansion.

By contrast, inflation in restaurants and hotels eased slightly to 13.2% from 13.7%. Deflation in clothing and footwear softened, with prices in this category falling 4.7%, compared with a 4.9% decline previously. On a monthly basis, consumer prices rose 2.1% in September, the largest increase since June 2024, after edging up just 0.1% in August.

On a month-over-month basis, the latest figure shows that prices in September rose significantly faster compared with the previous month, when inflation was almost flat. The comparison uses each month’s change relative to the immediately preceding month, highlighting how quickly the inflation environment has shifted in just one period.

The move from 0.1% to 2.1% MoM will likely draw close attention from policymakers, businesses, and investors, as it may indicate emerging inflationary momentum after a subdued August. However, the data release contains no further details on the drivers behind the increase.

Investors remained focused on developments in the Middle East and their potential impact on energy prices and inflation. Oil prices eased after US President Trump pledged not to launch an attack on Iran before the midterm elections, helping to alleviate concerns about further disruptions to energy supplies.

Even so, markets continued to factor in the likelihood that the Federal Reserve will keep interest rates elevated for an extended period to counter persistent inflationary pressures. Fed funds futures implied an approximately 81% probability that the central bank will leave rates unchanged this month, while the odds of a 25-basis-point increase in December were around 69%.

Even so, markets continued to factor in the risk that the Federal Reserve may need to keep interest rates elevated for an extended period to counter persistent inflationary pressures. Futures pricing indicated an approximately 81% probability that the Fed would leave rates unchanged at its upcoming meeting, while the odds of a 25-basis-point hike in December were around 69%. For the week, the 10-year Treasury yield was about 5 basis points lower.

At the same time, strong demand at this week’s 10-year and 30-year Treasury auctions signaled that investors remained prepared to buy longer-dated US government debt despite the recent sell-off.

Both the current and previous readings are based on year-over-year comparisons, measuring price changes in each month against the same month a year earlier. The move from 8.1% in August to 10.0% in September underscores a significant monthly step-up in the annual inflation rate, indicating that price growth is gaining momentum rather than stabilizing.

The acceleration in September’s CPI will likely keep inflation dynamics in sharp focus for policymakers and market participants, as they assess the trajectory of price growth going into the final quarter of 2026.

Technology shares led the advance, with TCS surging 4.2% after posting stronger-than-expected Q2 FY27 results. Infosys rose 3%, HCL Tech gained 2.8%, and Tech Mahindra added 1.4%. The tech sector had previously been under pressure due to worries over potential US green-card restrictions and uncertainty around global technology spending.

Additional support came from solid gains in banking, financial, and FMCG stocks, helping to underpin the broader market rally.

At the same time, reports indicated that Iran’s foreign minister said Tehran was reviewing the US response to its proposal to reopen the Strait of Hormuz within seven days. Adding to the downward pressure on prices, China is expected to resume refined fuel exports in October, following a brief suspension during the Golden Week holiday.

However, risks to shipping through the Gulf and the Strait of Hormuz remain, and supply disruptions continued in the Gulf of Mexico, where Hurricane Isaias forced producers to shut in about 1.3 million bpd as of Thursday, according to the US Marine Minerals Administration. For the week as a whole, crude oil prices were little changed.

By destination, exports to the Netherlands increased 46.8% and those to Spain grew 11.2%, whereas shipments to the United States declined 28.5%.

Imports rose at a slower pace, up 2.8% to €8.35 billion. This increase was led by a 23.5% rise in fuels and lubricants and a 16.7% gain in machinery and other capital goods. In contrast, imports of industrial supplies fell 8.6%, largely due to lower purchases of chemicals. Geographically, imports from China grew 27.3% and from Spain 8.1%, while imports from Ireland dropped sharply by 75.9%.

Despite the improvement in August, Portugal’s trade deficit widened over the first eight months of 2026, reaching €24.42 billion, compared with €21.97 billion in the same period of the previous year.