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Losing 84K jobs in February marks ‘gut punch’ for Canada’s economy: experts

Click to play video: 'Finding a job is becoming harder for young Canadians'
Finding a job is becoming harder for young Canadians
Young Canadians looking for work are struggling to find it. The latest job numbers from Statistics Canada show youth unemployment came in at 12.8 per cent in January, almost double the national average. Ken Chatoor with the Labour Market Information Council looks at what's driving youth unemployment. – Feb 10, 2026

Canada lost 84,000 jobs and the national unemployment rate rose to 6.7 per cent in February — 0.2 percentage points higher than the previous month, according to Statistics Canada.

The Labour Force Survey for February was released Friday, and comes after January’s report showed the unemployment rate was 6.5 per cent.

Those job losses were sharply lower than expected and the agency said Friday that February saw more than 100,000 jobs lost in full-time work, while private sector employment fell by 73,000 positions. The net job loss total of 84,000 is the final amount left over after calculating all jobs lost in the month minus the number of jobs added.

“The February Labour Force Survey was one of the weakest monthly prints we’ve seen in a while. The headline [84,000] employment drop was bad, and there weren’t many positive details beneath the surface,” Indeed’s senior economist Brendon Bernard said in a statement.
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“Projections for the Canadian economy in 2026 have pointed to a soft, but steady labour market, one where it’s tough to expect the weak market for job seekers to turn around. The concern now is that looming clouds on the horizon, first from trade, and now geopolitics, start to thunder.”

This comes as the trade war and U.S. tariffs continue to hammer Canada’s economy and job market, with businesses feeling uncertain about the long term mostly holding off on expansion and hiring plans. The Iran war has also added a layer of uncertainty to global economies as oil prices skyrocket and supply chains are in jeopardy, which could put additional pressure on consumers and businesses alike.

Click to play video: 'Finding a job is becoming harder for young Canadians'
Finding a job is becoming harder for young Canadians

A Reuters poll of economists heading into Friday’s release expected a slight rise in the unemployment rate but also called for a gain of 10,000 jobs last month.

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The first two months of the year have seen a total of 109,000 jobs lost, including the 25,000 shed in January.

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“February’s labour report is a bit of a gut punch. The pattern we’re seeing in the labour market indicates businesses aren’t just pausing — they’re contracting,” Shannon Terrell, a personal finance expert at NerdWallet Canada, said in a statement.

February’s decline in jobs was led by youth aged 15 to 24 years old, with a drop of 47,000, and the youth unemployment rate increased by 1.3 percentage points to 14.1 per cent. The recent peak for youth unemployment was 14.6 per cent reached in September 2025, which was the highest since 2010.

Employment fell by 56,000 jobs in services-producing industries. This includes wholesale and retail trade, which Statistics Canada says has trended down since October 2025, with a total of 52,000 jobs lost.

Click to play video: 'Business Matters: Canadian economy loses 25,000 jobs in January'
Business Matters: Canadian economy loses 25,000 jobs in January

Twenty-eight thousand jobs were eliminated in goods-producing industries, including construction and manufacturing sectors.

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There were also 14,000 jobs shed in “other services,” which includes repair and maintenance, personal care and laundry, as well as religious and advocacy activities.

Meanwhile, transportation and warehousing were among the sectors that added 10,300 jobs in February, while public administration saw 8,100 new jobs and those in utilities climbed by 1,800.

Regionally, Quebec led the job declines with a drop of 57,000, which was the first significant decrease since January 2022. The unemployment rate in Quebec also increased from 5.2 per cent to 5.9 per cent in February.

British Columbia shed 20,000 jobs, while Saskatchewan and Manitoba lost 5,500 and 4,000 jobs, respectively. Newfoundland and Labrador added 2,100 jobs.

Ontario’s employment held steady, Statistics Canada says, after 67,000 jobs were lost in January. Meanwhile, the number of Ontarians searching for work in February increased by 28,000, and the unemployment rate in the province increased 0.3 percentage points to 7.6 per cent.

“Canadians out of work face significant headwinds and may need to widen their search beyond their sector or industry. Contract work and part-time gigs may not be ideal, but you know what they say: ‘any port in a storm,'” Terrell said.

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