Canada has lost more than 100,000 full-time jobs since the start of 2026, while the national unemployment rate climbed to 6.7%, according to labour figures released Friday. The data adds pressure on Prime Minister Mark Carney as his government attempts to shield the country’s economy from tariffs imposed by the United States.
The report shows that February recorded the steepest employment decline since the COVID-19 pandemic. The losses erased much of the job growth Canada saw toward the end of last year.
Wholesale and retail trade experienced the largest contraction in employment during the month, contributing heavily to the overall decline.
Carney addressed the figures during a visit to Norway, telling reporters that US trade actions against Canada are “causing big adjustments in the Canadian economy.” He also pointed out that wages across the country have continued to trend upward. The prime minister added that the current unemployment rate remains slightly lower than the 6.8% level recorded when he took office in March 2025.
Economists reacted cautiously to the report. Some described the labour market data as concerning, noting that employment weakness appeared during a period of ongoing trade uncertainty.
The opposition Conservative Party of Canada issued stronger criticism, calling the figures “terrible news.”
Party leader Pierre Poilievre linked Canada’s economic position to the government’s policies, while also acknowledging broader global challenges. Speaking to reporters on Friday, Poilievre said countries around the world face tariffs imposed by Donald Trump, but argued that Canada’s economy has been shrinking under Carney’s leadership.
Poilievre made the remarks before departing for the United States, where he plans to meet executives from automotive companies and lawmakers to discuss his party’s approach to the ongoing Canada–US trade dispute.
Since returning to office last year, Trump has imposed tariffs on several major Canadian industries, including automobiles, steel, and aluminium. The duties have contributed to thousands of job losses across affected sectors.
The United States has also introduced broader trade measures. Among them is a worldwide 10% tariff applied to many imports. A number of Canadian exports have avoided those duties because of protections under the United States–Mexico–Canada Agreement.
The future of the agreement remains uncertain. The pact is scheduled for a mandatory review this year, and Trump has indicated he may support scrapping it or replacing it with separate trade arrangements involving Canada and Mexico.
According to CIBC Capital Markets senior economist Katherine Judge, the uncertainty surrounding trade policy has weighed heavily on Canada’s labour market.
Judge wrote that the latest figures show labour market slack has increased while economic activity has slowed amid unresolved trade tensions. She described the data as a “very worrisome report.”
Canada remains highly dependent on the United States as an export destination. The US receives roughly three-quarters of Canadian goods exports, although that share has declined in recent months to around 67%.
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