Statistics Canada reported a surprising downturn in the nation's employment figures for February, revealing a loss of 84,000 jobs and an increase in the unemployment rate to 6.7%. The job losses offset gains made in late 2025, following a loss of 25,000 jobs in January. These figures diverge sharply from economists' predictions, who anticipated a gain of 10,000 jobs and only a slight rise in the unemployment rate.
The hardest-hit demographics were young workers aged 15 to 24, and men aged 25 to 54. Full-time positions and private sector jobs saw the most significant decreases. Regionally, Quebec experienced the most substantial losses, shedding 57,000 positions, marking the province's first significant employment decline in over four years. British Columbia also saw a considerable drop, with 20,000 jobs lost.
Several sectors experienced declines, with wholesale and retail trade leading the way, followed by construction and manufacturing. Meanwhile, the transportation and warehousing sector, along with public administration, saw some gains. Compared to February of last year, overall employment remained relatively unchanged.
The Bank of Canada is scheduled to make its next interest rate decision on March 18, just days after Statistics Canada releases February's consumer price index. These employment figures will likely factor into the central bank's considerations as it assesses the overall health of the Canadian economy.
