Employment was virtually unchanged in February (+1,100; +0.0%) and the employment rate held steady at 61.1%. The unemployment rate was unchanged at 6.6%, according to a report released Friday by Statistics Canada.
In February, employment rose among core-aged (25 to 54 years old) women (+27,000; +0.4%), while it fell among women aged 55 years and older (-15,000; -0.8%), said the federal agency.
Employment increased in wholesale and retail trade (+51,000; +1.7%) as well as finance, insurance, real estate, rental and leasing (+16,000; +1.1%). There were declines in professional, scientific and technical services (-33,000; -1.6%) and transportation and warehousing (-23,000; -2.1%), it said.
Statistics Canada said employment in wholesale and retail trade has trended up in recent months, rising 107,000 (+3.7%) from a recent low point in July 2024 and offsetting declines in the first half of 2024. Compared with 12 months earlier, the number of people working in the industry was little changed.
Overall employment in Canada held steady in February, following three consecutive monthly increases totalling 211,000 (+1.0%) in November, December and January. On a year-over-year basis, employment was up by 387,000 (+1.9%) in February, explained Statistics Canada.
“The employment rate—the proportion of the population aged 15 and older who are employed—was unchanged at 61.1% in February. This follows three consecutive months of increases. The employment rate had previously fallen 1.7 percentage points from April 2023 to October 2024, as employment growth was outpaced by population growth,” noted the report.
The number of employees in the private sector was little changed in February, following increases in December (+39,000; +0.3%) and January (+57,000; +0.4%). Public sector employment and self-employment were also both little changed in February.
The unemployment rate was unchanged at 6.6% in February, following decreases in December (-0.2 percentage points) and January (-0.1 percentage points). The unemployment rate had previously trended up, rising from 5.0% in March 2023 to reach a recent high of 6.9% in November 2024, added Statistics Canada.
The labour force participation rate—that is, the proportion of the population aged 15 and older who were employed or looking for work—decreased by 0.2 percentage points to 65.3% in February, the first decrease since September 2024, it said.
“The job market couldn’t keep up its feverish pace over the last few months. Winter storms were likely the culprit, but deteriorating hiring sentiment given heighten policy/trade uncertainty may have also started to bleed into the data. One month doesn’t make a trend, but Canadians should be closely watching the labour market for signs of weakness in the months ahead. Luckily, the Canadian labour market came into the current tariff crisis on solid footing, which is important given the significant headwinds the economy is facing,” said James Orlando, Director and Senior Economist at TD Economics.
“The Bank of Canada is set to meet next week, and markets are solidifying around a 25 bp cut. We have been arguing that it is prudent for the central bank to keep cutting as insurance against the downside risks brought on by tariffs. Our scenario analysis embeds significant risk of recession should President Trump keep holding tariffs over our heads. And even if delays keep happening, the uncertainty will weigh on business and consumer confidence, diminishing our previously rosy outlook for the economy.
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