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Canada Sheds 84,000 Jobs in February, Lifting Unemployment to 6.7%

The slump heightens pressure on the Bank of Canada ahead of its March 18 rate decision.

Overview

  • The loss, led by 108,000 fewer full-time positions and a 73,000 drop in private‑sector roles, was the largest monthly decline outside the pandemic in nearly 17 years and missed forecasts for a 10,000 gain.
  • Job cuts spanned services and goods, with wholesale and retail trade down 18,000 and construction and manufacturing declining, while transportation and public administration recorded modest increases.
  • Quebec accounted for 57,000 of the national decline, with further losses in British Columbia, Saskatchewan and Manitoba, as Ontario was little changed.
  • Youth were hit hardest, losing 47,000 jobs as the unemployment rate for ages 15–24 climbed to 14.1%, and the national participation rate edged down to 64.9%.
  • Average hourly wages for permanent employees rose 4.2% year over year, complicating the inflation outlook as economists cite U.S. trade actions and higher energy prices as added risks.