Minimal job gains in February as unemployment rate holds at 6.6%

OTTAWA — The Canadian labour market felt a chill in February with employment “virtually unchanged” from the month before, Statistics Canada said Friday.

The Canadian economy added just 1,100 jobs last month, the agency said, well below the 76,000 jobs added in January.

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Economists polled by Reuters ahead of Friday had expected an increase of 20,000 new positions for the month.

February’s modest gains were enough to keep the unemployment rate steady at 6.6 per cent as the Canadian population grew at its slowest monthly pace since April 2022.

StatCan’s estimates show the Canadian population grew by 47,000 people aged 15 or older in February, less than half the number seen in the same month a year ago.

The agency’s figures show a loss of 19,700 full-time roles in February, offset by a gain of 20,800 part-time jobs.

Job growth last month was led by the wholesale and retail trade sectors and the finance, insurance, real estate, rental and leasing industries.

Those gains were offset by losses in professional, scientific and technical services and transportation and warehousing.

Canada’s manufacturing industry, which led job gains in January, contracted by 4,800 positions in February.

StatCan said all provinces saw employment hold steady in February except Nova Scotia, which shed 4,200 part-time positions.

A series of major snowstorms in Central and Eastern Canada last month meant 429,000 Canadians lost hours of work, the agency said, more than four times the five-year average for the figure in February. Total hours worked dropped 1.3 per cent last month, the largest monthly decline since April 2022.

Average hourly wages accelerated slightly to 3.8 per cent year-over-year in February from 3.5 per cent in January, StatCan said.

February’s employment figures reflect an economy bracing for the impact of possible tariffs from the United States, which went into effect on March 4 and have since faced a series of revisions and retaliatory actions from Canada.

Friday’s jobs report is the last major data release the Bank of Canada will see before its next interest rate decision on March 12.

This report by The Canadian Press was first published March 7, 2025.

Craig Lord, The Canadian Press