Canada's Job Market Shows Resilience with Unexpected Gains

Canada's unemployment rate fell to 6.6% in January, with the country adding a net 76,000 jobs. Despite the drop, 1.5 million people remain unemployed, indicating persistent challenges. The economy shows improvement due to significant interest rate cuts, but potential U.S. tariffs and lower immigration may impede further growth.

In an unexpected turn, Canada's unemployment rate dropped to 6.6% in January, marking a second consecutive month of decline and resulting in the addition of a net 76,000 jobs. Analysts had anticipated a lower job increase of 25,000, with the unemployment rate predicted at 6.8%.

While these figures suggest economic resilience, the Canadian job market faces persistent challenges, with 1.5 million people still unemployed. New job opportunities are emerging in sectors such as manufacturing and technical services, although uncertainty looms due to potential U.S. tariffs and decreased immigration rates.

The central bank's efforts, including a total of 200 basis points in interest rate cuts, have begun to stimulate business activity and consumer spending. However, experts suggest that additional rate cuts may be necessary to address economic slack and mitigate trade-related uncertainties.

(With inputs from agencies.)