Canada's Economic Uncertainty: Unemployment Rate Remains Steady Amid Tariff Concerns

Canada's unemployment rate remained steady at 6.6% in February, with only marginal job growth. Uncertainty surrounding U.S. tariffs impacted hiring decisions, and the Canadian dollar fell post-data release. The upcoming Bank of Canada's monetary policy decision could lead to another interest rate cut amid changing economic conditions.

Canada's unemployment rate held steady at 6.6% in February, with only slight job growth, as new data highlights the early effects of U.S. tariff uncertainty on corporate hiring decisions. Statistics Canada reported a net addition of just 1,100 jobs, a drastic reduction from January's increase of 76,000 positions.

Contrary to analysts' predictions of a 6.7% unemployment rate and an addition of 20,000 jobs, the figures raise questions ahead of the Bank of Canada's March 12 monetary policy decision. Currency swap markets indicate a 73% likelihood of a further interest rate cut to 2.75%, extending a trend of easing monetary policy.

Despite steadying rates since a 6.9% peak in November, Canadian economic growth faces new challenges, including slowed working-age population growth due to immigration curbs and ongoing tariff uncertainties. President Trump's temporary suspension of a 25% tariff has added to the unpredictability.

(With inputs from agencies.)