Minimal job gains in February as unemployment rate holds at 6.6%: StatCan
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.
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% 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.
Average hourly wages accelerated slightly to 3.8% year-over-year in February from 3.5% in January, StatCan said.
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% last month, the largest monthly decline since April 2022.
READ: Statistics Canada reports December retail sales up 2.5% at $69.6B
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.
TD Bank director of economics James Orlando said in a note to clients Friday that the harsh winter weather was the "likely culprit" for Canada's weak labour market results in February, but he added that fears of the impending tariffs may have also started to bleed into the data.
"Luckily, the Canadian labour market came into the current tariff crisis on solid footing, which is important given the significant headwinds the economy is facing," he said.
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.
CIBC senior economist Andrew Grantham said in a note that February's hiring stall, combined with a looming hit to the economy from the trade war, should tip the Bank of Canada toward another 25-basis-point cut next week.
