Canada’s labour market experienced a sharp setback in February, with the country losing 84,000 jobs and the national unemployment rate rising to 6.7 percent, according to a report released by Statistics Canada on March 13.
The latest data shows that most of the job losses came from full-time and private-sector positions. The decline was particularly noticeable among men aged 25 to 55 and young people between 15 and 24 years old. Employment levels for core-aged women and workers aged 55 and above remained largely unchanged during the month.
Statistics Canada reported that service-producing industries accounted for the majority of the losses, shedding about 56,000 jobs. Goods-producing sectors also saw a drop of around 28,000 positions. Among the hardest-hit areas were wholesale and retail trade, which lost approximately 18,000 jobs, followed by the “other services” category such as personal and repair services which declined by about 14,000 jobs.
Government employment also fell sharply, declining by 73,000 positions in February. This marked the second consecutive month of decreases in public sector employment, while the number of self-employed workers remained mostly stable.
The February decline represents the biggest monthly job loss in more than four years. The last comparable drop occurred in January 2022, when Canada lost around 200,000 jobs as the Omicron wave of COVID-19 forced renewed public health restrictions.
The weak February numbers follow a smaller decline of 25,000 jobs recorded in January. According to Statistics Canada, these recent losses have partially reversed the employment gains seen during the latter half of 2025. During that period, Canada added 60,000 jobs in September, 67,000 in October, 54,000 in November, and 8,200 in December.
Despite the monthly rise, the unemployment rate remains close to its level a year ago, when it stood at 6.6 percent. It also remains below the recent peak of 7.1 percent recorded in September 2025. However, youth unemployment increased significantly in February, rising 1.3 percentage points to 14.1 percent, approaching the recent high of 14.6 percent.
Provincial data showed varying trends across the country. Quebec recorded the largest increase in unemployment, rising by 0.7 percentage points. Ontario, Saskatchewan, and New Brunswick each saw increases of 0.3 percentage points, while Nova Scotia’s rate rose by 0.2 points. In contrast, Manitoba saw its unemployment rate fall by 0.6 percentage points, Alberta declined by 0.1 points, and Prince Edward Island dropped by 0.4 points. British Columbia and Newfoundland and Labrador reported little change.
Meanwhile, wages continued to rise despite the job losses. Average hourly earnings grew by 3.9 percent year-over-year in February, up from 3.3 percent growth recorded in January.
The labour report quickly sparked political reactions. Conservative Leader Pierre Poilievre criticized the government’s economic management, claiming Canada now has the “only shrinking economy and the worst food inflation among G7 countries.” He called for removing policy barriers to investment and pushing for tariff-free trade to protect Canadian jobs.
Prime Minister Mark Carney defended the government’s record, noting that Canada had created more than 80,000 jobs on a net basis over the past six months. He added that the unemployment rate is lower than when he assumed office in early 2025, when it stood at 6.9 percent.
Carney also pointed to U.S. tariffs as a factor affecting Canada’s economy, saying they are forcing “major adjustments.” He said the Liberal government is responding with large-scale investments across several sectors.
Conservative MP Garnett Genuis, the party’s shadow employment minister, also criticized the report, describing the figures as troubling and arguing that current Liberal policies are failing to support jobs and economic growth.
