Canada Loses 83,900 Jobs in February as Unemployment Rises
The Canadian economy shed 83,900 jobs in February as the unemployment rate rose to 6.7 percent. The decline was driven by losses in the private sector and services.
The economy of Canada unexpectedly shed 83,900 net jobs in February, causing the national unemployment rate to climb to 6.7%. This sharp decline significantly missed market expectations, as analysts had anticipated a modest gain of 10,000 positions and a jobless rate of 6.6%. Statistics Canada noted that this contraction is the most substantial drop in employment in nearly 17 years, excluding the period of pandemic-related lockdowns.
The labor market's downturn occurs as economic growth has stalled, largely due to the impact of trade tariffs imposed by the United States on key sectors including steel, automobiles, lumber, and copper. With the losses recorded in January and February, the economy has now shed a total of 109,000 jobs, nearly offsetting the gains of 189,000 jobs seen between September and December.
