- Canada‘s economy lost 83,900 jobs in February 2026, causing the unemployment rate to jump to 6.7%.
- Business leaders are “brutal result” and point to broader economic weakness compounded by higher global energy costs.
- A potential positive is the 4.2% year-over-year wage growth for permanent employees.
- Ongoing bilateral talks with the United States on tariffs and trade could ease future economic pressure.
Canada’s labor market suffered a severe shock in February 2026, as the economy shed nearly 84,000 jobs, data from Statistics Canada showed. This sharp decline defied analyst expectations for a modest gain and drove the national unemployment rate up to 6.7%.
The February plunge follows a prior loss of 24,800 jobs in January. Consequently, the jobless rate has now reversed from a recent 16-month low of 6.5%. “this is simply a brutal result,” wrote BMO Capital Markets chief economist Doug Porter.
He noted underlying economic weakness is the story for 2026 so far. However, the situation is further strained by rising energy costs linked to global conflict.
Meanwhile, a key bright spot emerged in wage growth for permanent workers. Their average hourly earnings rose by 4.2% compared to the previous year, offering some offset to the grim hiring figures.
Furthermore, Canada is engaged in critical negotiations with its largest trading partner. Bilateral talks with the United States aim to mitigate tariff impacts and review a three-nation trade pact with Mexico. A successful resolution before July 1 could help cushion the economy from further trade-related damage.
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