Canada Employment Research Brief

Hiring intentions slow. After an average monthly gain of 84,000 positions in December and January, employment was largely unchanged in February, with Canada adding just 1,100 jobs. While some of this slowdown may be the first sign that tariff uncertainties are influencing employer’s staffing decisions, labour market conditions were also impacted by severe weather. The latter condition was cited as the main contributor to a 1.3 per cent monthly drop in hours worked. Unemployment, meanwhile, held at 6.6 per cent, as a drop in labour force participation kept the jobless rate steady. Canada’s unemployment rate is nevertheless expected to rise over the course of 2025 amid ongoing tariff threats; yet with recent policy changes poised to continue weighing on immigration and labour force growth, the rate could stabilize around 7.0 per cent by year-end.