Canada Employment Research Brief

Job market momentum fades. Canada’s labour market weakened in February, with employment falling by 84,000 positions. This marks the largest monthly decline since January 2022 and pushes cumulative job losses in the first two months of 2026 above 100,000. While severe winter storms likely contributed to the monthly drop, the weakness appears broader as slower economic growth and ongoing trade uncertainty continue to dampen hiring. Manufacturing employment declined by another 9,000 positions, extending the sector’s downward trend. Wholesale and retail trade also recorded notable job losses. As employment fell, the unemployment rate rose 20 basis points to 6.7 per cent, highlighting a labour market that continues to struggle for sustained momentum.