Canada’s economy suffered a severe jobs setback in February 2026, with a loss of approximately 83,900 positions that pushed the unemployment rate up to 6.7%. The data, which sharply missed analyst expectations for a gain, was described by BMO Capital Markets chief economist Doug Porter as a brutal result compounded by global energy market pressures. While wage growth provided a minor positive note, the report highlights significant economic headwinds as the country navigates international trade negotiations.
Canada’s job market teetered drastically in February 2026, with the economy losing approximately 83,900 jobs. Statistics Canada data shared Friday revealed the jobless rate went up to 6.7% led by losses in full-time jobs.
The report missed analysts’ expectations of a job gain of 10,000 and an unemployment rate of 6.6%. In the previous month, the economy lost 24,800 jobs, and the jobless rate was at a 16-month low of 6.5%.
“No sense sugar-coating this one, this is simply a brutal result,” Doug Porter, chief economist with BMO Capital Markets, wrote in a note. “The underlying story so far in 2026 is one of weakness…. And now, the economy has to contend with higher energy costs flowing from the Iran conflict.”
On the bright side, there were some positive notes from Canada’s latest jobs report. For example, the average hourly wage of permanent employees grows 4.2%.
Furthermore, Canada and the United States are engaged in bilateral talks to reduce the impact of tariffs and for the review of a three-nation free trade pact also involving Mexico before July 1. Should these talks go well and the pact become official, the negative impact felt on Canada’s economy could be eased.
