Unemployment rate declines in Canada, 25,000 jobs lost in the economy in January
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Statistics Canada said Friday that Canada’s unemployment rate fell to 6.5 per cent in January and that the economy lost 25,000 jobs as a decline in part-time work.
The unemployment rate – the lowest since September 2024 – was the result of fewer people actively looking for work. The data agency also noted that the number of people who were neither employed nor looking for work increased in January on a year-over-year basis.
While part-time employment declined by 1.8 percent, full-time work increased by 0.3 percent. The number of private sector employees declined by 52,000, partially offsetting gains made during the last three months of 2025. Little change was seen in the number of public sector employees.
Manufacturing, educational services, and public administration lost most jobs, while jobs grew in information, culture, and entertainment; business, buildings and other support services; Agriculture; And utilities.
Employment in Ontario declined by 67,000, while Alberta gained 20,000 jobs, Saskatchewan gained 6,100 jobs and Newfoundland and Labrador gained 3,800 jobs.
Average hourly wages increased 3.3 percent, or $1.18, compared to the same period last year, to a total of $37.17 an hour.
“Overall, today’s employment report was quite mixed, with both employment and unemployment declining markedly in the same month,” Andrew Grantham, senior economist at CIBC Capital Markets, wrote in a note to clients.
“As a result, we doubt this will have much of an impact on the Bank of Canada, and it does not change our view that interest rates will remain in place for the remainder of this year,” he said.
