Canada Employment Research Brief

Data suggests soft job market even as unemployment edges down. Canada shed roughly 25,000 jobs in January, while the employment rate edged down to 60.8 per cent, its first decline since last summer. Despite these job losses, the unemployment rate fell 30 basis points to 6.5 per cent amid a labour force contraction — participation slid 40 basis points to 65 per cent as fewer people actively searched for work. Sector-wise, manufacturing, education, and public administration led the job pullback, while information, recreation, business services, and agriculture posted modest gains. Wage growth also eased 10 basis points to 3.3 per cent year over year, reinforcing the picture of a labour market that is cooling, rather than overheating.