Canada lost a net 25,000 jobs in January, the first monthly decline since last summer, with Ontario shedding 67,000 positions amid weakness in manufacturing and educational services, Statistics Canada reported Friday.
The unemployment rate unexpectedly fell 0.3 percentage points to 6.5 per cent — the lowest since September 2024 — as the labour force shrank, with about 94,000 fewer people actively seeking work.
Participation rate dropped 0.4 points to 65.0 per cent, signalling potential discouragement among job seekers. Part-time work plunged 70,000, offset by 45,000 full-time gains.
Alberta bucked the trend, adding 20,000 jobs.
The report highlights softening demand, possibly linked to U.S. tariffs impacting exports. Economists had forecast a slight gain.This comes as Canada stabilizes immigration amid population pressures.
The federal government targets 380,000 permanent residents annually from 2026 to 2028, with 385,000 new temporary resident arrivals in 2026, down from prior years to ease housing and service strains, per Immigration, Refugees and Citizenship Canada.
Wage growth slowed to 3.3 per cent year-over-year. Analysts say the data may influence Bank of Canada rate decisions.
