Manitoba job losses raise alarm as manufacturing and mining sectors hit hard in August but September gains signal rebound

Manitoba’s job market took a sharp downturn in August before rebounding strongly in September, according to new labour force data from Statistics Canada.

The province shed more than 5,000 jobs in August, two-thirds of them full-time, pushing the unemployment rate up 0.2 percentage points to 5.7 per cent. But September saw the addition of 3,900 jobs, making Manitoba one of only three provinces to post employment gains last month.

“These results show that despite an uncertain trade environment, Manitobans are optimistic about job opportunities and are re-entering the workforce with confidence,” said Jamie Moses, Minister of Business, Mining, Trade and Job Creation. “Our government will continue supporting skills development and investment to ensure this momentum translates into long-term growth.”

Manufacturing Losses Lead the August Decline

Manufacturing employment fell by 5.8 per cent in August, a drop of about 4,300 jobs between July and August. While Manitoba accounts for less than four per cent of Canada’s total manufacturing workforce, the province represented 22 per cent of all national manufacturing job losses that month.

The steepest declines were in transportation equipment manufacturing (down 24.8 per cent, or 2,600 jobs) and wood product manufacturing (down 42.9 per cent, or 1,200 jobs). Both industries have faced challenges tied to ongoing U.S. trade tariffs, which have made exports less competitive and created uncertainty for investment planning.

“These were not seasonal jobs,” said Konrad Narth, MLA for La Vérendrye, in a statement. “Two-thirds of the jobs lost were full-time positions. One in five manufacturing jobs lost in Canada was here in Manitoba, a province that makes up less than five per cent of the sector. The math just doesn’t add up.”

Mining Sector Down Amid Wildfires and Supply Chain Disruptions

The province’s resource extraction sector, including mining and oil and gas, also saw a significant hit in August, with employment down 13.4 per cent, a loss of nearly 900 jobs.

The decline followed a summer of wildfire emergencies that displaced tens of thousands of northern residents and temporarily shuttered several mining operations. Exports of mining and quarrying products to the U.S. were down 44 per cent in the first half of 2025 compared to the same period in 2024, according to federal trade data.

September Brings Stronger Labour Market

In contrast to the August slump, September saw robust employment growth. Full-time employment surged by 11,100 jobs from August to September, more than offsetting the prior month’s full-time losses.

Average hourly wages climbed 4.1 per cent year-over-year. Both the public and private sectors posted gains, indicating broad-based economic growth. Manitoba continues to hold one of the three lowest unemployment rates in the country.

Employment among women rose by 1.2 per cent, while youth unemployment eased to 12.4 per cent. The decline in part-time work and rise in participation rates point to a shift toward more stable, full-time jobs across the province.

Regional Impacts Vary Across Manitoba

The Southeast region, anchored by Steinbach, continued to show resilience in August with the province’s lowest unemployment rate at 3.6 per cent and year-over-year employment growth of 7.6 per cent.

Winnipeg saw the highest jobless rate at 7.0 per cent, partly attributed to the end of 250 temporary contracts at Canada Revenue Agency tax centres in early September. The Parklands and North region, where wildfire evacuations disrupted local economies, also recorded job losses of nearly one per cent year-over-year.

Agriculture Expands Despite Global Headwinds

Not all sectors posted declines in August. Employment in agriculture rose 15.2 per cent, adding roughly 2,000 jobs compared to July. But industry experts warn those gains could be short-lived following China’s 75.8 per cent tariff on Canadian canola seed imports, introduced mid-August.

Manitoba produces over 15 per cent of Canada’s canola and supports about 35,000 jobs in farming and processing annually. The Canola Council of Canada says profitability remains under threat due to both the new tariffs and existing 100 per cent duties on canola oil exports to China earlier this year.

By the Numbers: Manitoba Labour Market

August 2025

Employment change: –5,200 (–0.7%)

Full-time jobs lost: –3,300

Part-time jobs lost: –1,900

Unemployment rate: 5.7% (+0.2 pts from July)

Working population: 736,200

National unemployment rate: 7.1%

September 2025

Employment change: +3,900

Full-time jobs gained: +11,100

Average hourly wage: +4.1%

Unemployment: among lowest 3 provinces in Canada

Women’s employment: +1.2%

Youth unemployment: 12.4%

This story was originally published in The Winnipeg Sun. It is republished under a Creative Commons license as part of the Local Journalism Initiative.