Canada’s
unemployment charge
rose to six.7 per cent in February as extra folks appeared for work and the financial system
shed 84,000 jobs
, in line with the most recent report from
Statistics Canada,
launched Friday.
The nation’s employment charge fell 0.2 share factors to 60.6 per cent, the second consecutive month-to-month decline and a hair above the latest low of 60.5 per cent recorded in August 2025.
The participation charge — the proportion of the inhabitants aged 15 and up who had been employed or searching for work — fell by 0.1 share factors to 64.9 per cent in February and was down 0.4 share factors in comparison with a yr in the past.
Almost 23 per cent of the 1.5 million individuals who had been unemployed in February had been in long-term unemployment and had been repeatedly trying to find work for 27 weeks or extra. Statistics Canada mentioned that share was little modified from a yr in the past, however “considerably above” the pre-COVID-19 pandemic common of 17.1 per cent recorded throughout 2017-19.
Economists had been anticipating a achieve of 10,000 jobs in February however the numbers had been “weaker than anticipated,” mentioned Andrew Hencic, director and senior economist at TD Economics, in a word.
He mentioned Canada’s financial system is struggling to achieve traction, one thing that was anticipated given the “structural modifications” it’s dealing with.
“Trying ahead, we expect the labour market to tread water in 2026, as a fast slowdown in inhabitants development drags on labour provide, and smooth financial momentum limits hiring,” he mentioned.
A lot of the job losses (57,000) got here from Quebec, the place employment declined 1.2 per cent in February — the best lower within the nation and essentially the most vital drop within the province in 4 years. Employment was additionally down in British Columbia, Saskatchewan and Manitoba, whereas there was little change in different provinces.
Employment dropped in each services-producing and goods-producing industries, which misplaced 56,000 and 28,000 positions, respectively.
Wholesale and retail commerce had essentially the most job losses, with 18,000 fewer folks working within the sector, whereas “different companies,” corresponding to private and restore companies, shed 14,000 jobs and development misplaced 12,000 jobs.
The variety of manufacturing positions declined by 9,200 final month. 12 months over yr, the sector shrunk 2.8 per cent and misplaced 52,000 jobs.
The youth unemployment charge rose from 12.8 per cent in January to 14.1 per cent in February, which Statistics Canada famous is near the 14.6 per cent recorded in September 2025, the best in 15 years (exterior of the 2020-21 pandemic). In the meantime, youth employment fell 1.7 per cent.
The 0.6 per cent decline in full-time jobs in February erased positive factors from the earlier two months, and part-time jobs had been unchanged. Non-public sector employment was down for the second month in a row with a 0.5 per cent decline, whereas numbers for the general public sector and self-employed had been little modified.
Common hourly wages had been up by 3.9 per cent year-over-year in February, up from the three.3 enhance in January.
Trying ahead, Hencic mentioned the “wildcard” is how massive the inflation shock from the continued battle within the Center East might be.
“The period of the provision disruption stays extremely unsure, however its size will impression inflation and, thereafter, client spending and the financial system at massive,” he mentioned.
Bradley Saunders, North America economist at Capital Economics Ltd., mentioned in a word that February’s employment hunch places the financial system on observe for 0.5 per cent annualized development for the primary quarter of 2026, weaker than the 1.8 per cent achieve forecasted by the Financial institution of Canada.
The central financial institution’s subsequent rate of interest choice comes subsequent week, on March 18. At its final announcement on Jan. 28, the financial institution held its benchmark charge at 2.25 per cent.
“The rebound within the unemployment charge to six.7 per cent in February helps our view that, regardless of the surge in oil costs, the Financial institution of Canada might be reluctant to debate a possible return to charge hikes this yr,” Saunders mentioned.
