Date: March 14, 2026 l By: Dalena Reporters
Canada’s labour market suffered a sharp setback in February as the country lost about 84,000 jobs, pushing the national unemployment rate higher and raising concerns about the strength of the economy at the start of 2026.
According to the latest Labour Force Survey released by Statistics Canada, employment declined by 84,000 positions, representing a 0.4 percent drop, marking one of the most significant monthly job losses in recent years.
The downturn pushed Canada’s unemployment rate up to 6.7 percent, compared with 6.5 percent in January, as more Canadians searched for work while job opportunities declined.
Economists say the drop erased a large portion of the job gains recorded toward the end of 2025, suggesting that Canada’s labour market may be cooling after a period of strong hiring.
Statistics Canada reported that the largest employment declines occurred in the wholesale and retail sector as well as other service industries, including personal and repair services. The losses were also spread across goods-producing sectors such as construction and manufacturing.
The decline in employment was particularly severe among young workers aged 15 to 24, where unemployment rose sharply to 14.1 percent following a significant drop in jobs for that age group.
In addition, the data showed a steep fall in full-time jobs, which dropped by about 108,000 positions, while the number of part-time workers remained largely unchanged.
Provincial data revealed that Quebec experienced the largest job losses, followed by declines in British Columbia, Saskatchewan, and Manitoba, while employment remained relatively stable in several other provinces.
Economic analysts say the February report highlights growing uncertainty in Canada’s economy, with factors such as global trade tensions, slowing business investment, and geopolitical instability potentially affecting hiring decisions.
The weakening job numbers also had an immediate impact on financial markets, with the Canadian dollar falling and bond yields slipping after the data release as investors reassessed expectations for future interest rate increases by the Bank of Canada.
Despite the disappointing figures, economists note that Canada’s labour market remains relatively resilient compared with previous downturns. However, the latest data suggests that employment growth may remain uncertain in the coming months as the country navigates economic pressures both at home and abroad.
For policymakers and businesses alike, the February report serves as a warning sign that Canada’s economic recovery could face new challenges in 2026 if job creation fails to rebound in the months ahead.