Canada’s job market teetered drastically in February 2026, with the economy losing approximately 83,900 jobs. Statistics Canada data shared Friday revealed the Jobless rate went up to 6.7% led by losses in full-time jobs. As Canada continues to cushion the blow of US Tariffs on the country,

The report missed analysts’ expectations of a job gain of 10,000 and an unemployment rate of 6.6%. In the previous month, the economy lost 24,800 jobs, and the jobless rate was at a 16-month low of 6.5%.

“No sense sugar-coating this one, this is simply a brutal result,” Doug Porter, chief economist with BMO Capital Markets, wrote in a note. “The underlying story so far in 2026 is one of weakness…. And now, the economy has to contend with higher energy costs flowing from the Iran conflict.”

On the bright side, there were some positive notes from Canada’s latest jobs report. For example, the average hourly wage of permanent employees grows 4.2%. Furthermore, Canada and the United States are engaged in bilateral talks to reduce the impact of tariffs and for the review of a three-nation free trade pact also involving Mexico before July 1. Should these talks go well and the pact become official, the negative impact felt on Canada’s economy could be eased.