Canada Loses Over 100,000 Jobs Early in 2026

Canada’s labour market showed signs of significant weakness in the first two months of 2026, with more than 100,000 jobs lost and the unemployment rate rising sharply, according to the latest data from Statistics Canada. This marked one of the steepest declines in employment outside of pandemic‑era disruptions.

Data released on March 13 revealed that Canada’s economy shed a net 83,900 jobs in February 2026, following a loss of about 24,800 positions in January. The cumulative loss of roughly 109,000 jobs over January and February brought a notable downturn in the labour market, undercutting much of the gains recorded in late 2025.

The sharp drop pushed the national unemployment rate up to 6.7%, significantly higher than analysts’ expectations and one of the highest among major developed economies. Employment declines spanned both goods‑producing and services sectors, with wholesale and retail trade among the hardest hit industries.

Economists pointed to external economic pressures — including lingering effects of tariffs on key Canadian exports — along with slower domestic demand as factors weighing on job growth. Youth unemployment and job losses among core working‑age Canadians also contributed to the broader weakness in the labour market.

Despite the disappointing figures, some officials highlighted that wage growth remained positive, and compared with recent U.S. job data, Canada’s unemployment rate was still relatively competitive. However, the job losses have raised concerns about economic resilience as global trade patterns and policy uncertainties continue to influence investment and hiring decisions.

The downturn in employment is expected to influence upcoming decisions by policymakers and could have implications for monetary policy and future trade negotiations.