Canada loses nearly 84,000 jobs in February as labour market weakens
Canada’s labour market suffered a sharp setback in February, with the economy losing 83,900 jobs, pushing the unemployment rate up to 6.7%, according to Statistics Canada.
The unexpected data triggered a decline in the Canadian dollar, as investors reassessed the outlook for the country’s economic growth.
Unexpected shock for economists
Economists had predicted a modest increase of around 10,000 jobs, making the actual decline a significant negative surprise for markets.
According to analysts, this represents the largest employment drop in nearly 17 years, excluding the dramatic job losses seen during pandemic lockdowns.
Potential implications for Canada’s economy
Financial markets reacted quickly to the data, as weaker labour conditions could signal slower economic growth in the coming months.
The figures may also influence the Bank of Canada’s future interest rate decisions, as policymakers weigh inflation risks against the need to support economic activity.
Analysts say upcoming labour market reports will be closely watched to assess the overall resilience of Canada’s economy.
