Canada loses 84,000 jobs in february as unemployment rate rises to 6.7%

The decline represents a 0.4% drop in employment, while the employment rate — the share of the population aged 15 and older who are working — fell 0.2 percentage points to 60.6%, marking the second consecutive monthly decline.

As reported by Statistics Canada in its latest Labour Force Survey, the job losses were concentrated among youth aged 15 to 24 and core-aged men between 25 and 54.

Employment among youth fell by 47,000 jobs (-1.7%), pushing the youth unemployment rate up 1.3 percentage points to 14.1%, one of the highest levels seen in recent years outside the pandemic period.

Among core-aged men, employment declined by 41,000 jobs (-0.6%), while employment among core-aged women and workers aged 55 and older remained largely unchanged.

Job losses across industries

The February decline was spread across both major sectors of the economy.

Employment in services-producing industries dropped by 56,000 jobs, while goods-producing industries lost 28,000 positions, according to the government data.

The largest losses were reported in wholesale and retail trade, which shed 18,000 jobs, continuing a downward trend that began in late 2025.

Another 14,000 jobs were lost in “other services”, a category that includes personal care, repair services, and advocacy or religious organizations.

In the goods sector, employment declined in construction (-12,000) and manufacturing (-9,200), the report said.

Regional employment declines

Job losses were also uneven across provinces. Employment dropped sharply in Quebec, which lost 57,000 jobs, marking the province’s first significant employment decline since early 2022. Quebec’s unemployment rate rose 0.7 percentage points to 5.9%.

British Columbia also saw employment fall by 20,000 jobs, while smaller declines were recorded in Saskatchewan (-5,500) and Manitoba (-4,000).

Employment increased modestly in Newfoundland and Labrador, which added 2,100 jobs, while other provinces showed little change.

In Ontario, employment remained largely steady after a sharp decline in January. However, the unemployment rate in the province rose 0.3 percentage points to 7.6% as more people began searching for work.

Full-time jobs decline

Much of the decline in February was driven by losses in full-time employment, which dropped by 108,000 positions, reversing gains recorded during the previous two months.

Private-sector employment also fell by 73,000 jobs, the second consecutive monthly decline.

Public-sector employment and self-employment levels were largely unchanged during the month.

Wage growth remains strong

Despite the employment slowdown, wage growth remained steady. Average hourly wages rose 3.9% year-over-year, increasing by $1.42 to $37.56, following a 3.3% annual increase recorded in January.

Long-term unemployment and labour participation

The report showed that about 1.5 million Canadians were unemployed in February, with 22.8% classified as long-term unemployed, meaning they had been searching for work for 27 weeks or more.

Canada’s labour force participation rate — the share of people either working or looking for work — edged down 0.1 percentage points to 64.9%.

Comparison with US

Statistics Canada also noted that the unemployment rate in Canada remains higher than in the United States.

After adjusting Canadian data to match U.S. labour-market definitions, Canada’s unemployment rate stood at 5.6% in February, compared with 4.4% in the United States, reflecting the historically persistent gap between the two economies.

Economists say the latest data suggests Canada’s labour market may be cooling after stronger job gains in late 2025, though wage growth and relatively stable participation levels indicate continued underlying resilience in the economy.