Unexpected Job Losses Shake Canadian Economy

In February, Canada's economy faced a significant job loss of 83,900, pushing the unemployment rate to 6.7%. Both services and goods sectors suffered as a result, reflecting the impact of U.S. tariffs and limited economic growth. The downturn follows previous job losses in January, signaling growing challenges for the labor market.

Canada experienced an unexpected economic downturn as it lost a net of 83,900 jobs in February, pushing the unemployment rate to 6.7%, according to Statistics Canada data released on Friday.

This drop, significant since nearly 17 years ago barring pandemic lockdown months, fell short of analyst expectations of a 10,000 job gain and a lower unemployment rate of 6.6%. This follows the prior month's loss of 24,800 jobs when the jobless rate was at a 16-month low of 6.5%.

The ongoing struggle in Canada's labor market largely stems from U.S. tariffs affecting key sectors such as steel, autos, and lumber, causing companies to restrain investments and announce layoffs. February's decline was led by a reduction of 108,400 full-time positions, with notable losses in both the private (72,600 jobs) and government (17,100 jobs) sectors.

(With inputs from agencies.)