Report comes after Q4 GDP growth was revealed flat
Statistics Canada revealed that Canada lost 25,000 jobs in January, with the employment rate falling 10 basis points to 60.8 per cent. This marks the first decline in the employment rate since August.
Unemployment fell by 0.3 per cent as fewer people searched for work.
The announcement comes up against economists' consensus. A Reuters poll showed that the expectation was for Canada to add 7,000 jobs in January, while RBC predicted a fall of 10,000 as some of the seasonal job gains in late 2025 were given back.
The biggest job losses were in Ontario, which lost 67,000 jobs. Alberta added 20,000 jobs, leading provincial gains.
Tiff Macklem, Governor of the Bank of Canada, made comments on Thursday saying he expected an 'uneven' recovery in the labour market this year as certain sectors gain and others struggle.
Auto manufacturing has struggled somewhat, under pressure from US tariffs. Notably, GM Canada laid off up to 1,200 workers at the end of January as they cut a shift from their Oshawa plant. The manufacturing sector as a whole lost 28,000 jobs.
RBC economists noted that clarity on trade issues should be supportive for hiring.
