Employers in Canada added 1,100 jobs across sectors in Canada last month, even as the country grapples with uncertainty around U.S. President Donald Trump’s tariffs.
The unemployment rate was steady at 6.6 per cent in February, remaining unchanged from January.
The employment rate rose in the retail and wholesale sector (1.7 per cent) as well as finance, insurance, real estate, rental and leasing (1.1 per cent).
However, some sectors, such as transportation and warehousing saw job losses (2.1 per cent).
February was the first full month since the inauguration of Trump, a period which has seen great uncertainty on the Canada-U.S. trade relationship.
It was also the period when a 30-day pause on threatened tariffs went into effect, with those tariffs hitting on Tuesday.
Economists called it “the most significant trade shock” since the 1930s.
Get daily National news
However, Trump on Thursday temporarily waived tariffs on some, but not all, products from Canada and Mexico, specifically those that fall under the Canada-United States-Mexico Agreement (CUSMA).
A Royal Bank of Canada outlook on the North American labour market said the uncertainty was enough to impact employment numbers.
“Tariff uncertainty alone (without actual tariff hikes implemented) won’t be enough to fuel layoffs, but it could slow hiring. Job postings on indeed.com edged lower in February after rising in December and January,” the report said.
‘Tariffs taking toll’
An RBC report Friday said the employment figures were relatively unchanged because the Canadian economy lost 20,000 permanent, full-time jobs and gained 21,000 part-time jobs in February.
Tu Nguyen, economist at RSM Canada, said, “February’s job report stands in sharp contrast to the previous three months and highlights the toll tariff threats are taking on Canada’s economy.”
She added, “Tariff threats and the outcome of trade negotiations will likely continue to influence the job market in the months ahead. Expect demand for talent to fall if broad-based tariffs are implemented alongside a spree of other tariffs, including reciprocal tariffs in April.”
It’s not just tariffs — the extreme cold weather and storms experienced across Canada may have also affected employment, economists said.
- Between Trump’s trade war and an election, Carney undergoes baptism by fire
- Almost 2 million people voted on 1st day of advance polls: Elections Canada
- On the Brink: Ontario mom ‘one bill away from paying to go back to work’
- Canada has the critical minerals Donald Trump wants. So what should we do with them?
“Actual hours worked plunged 1.3% — the largest one-month drop since 2022 — but largely because of bad weather,” the RBC report said.
Earlier Thursday, Trudeau told reporters Canada will not lift its retaliatory tariffs until Trump lifts his tariffs entirely.
“We will not be backing down from our response tariffs until such a time as the unjustified American tariffs on Canadian goods are lifted,” he said.
Canada has retaliated with an initial round of tariffs on $30 billion worth of U.S. goods, while provinces have pulled American liquor from store shelves and cancelled U.S. business contracts, among other measures.
Conservative Leader Pierre Poilievre said Canada should hold steady on its retaliation.
“We need to keep the counter-tariffs in place until the president removes all tariffs forever for Canadians,” he said. “We can’t have half-measures. We have to send a clear message to President Trump that if he wants to fight, then we will fight back.”
Comments