Canada Jobless Rate Drops to 16-Month Low

The unemployment rate in Canada stood at 6.7% in March 2026, unchanged from the prior month and slightly below the expected 6.8%. This figure is below the 7.1% peak observed in August and September 2025 and shows little change compared to the same period last year. The number of unemployed individuals rose by 1,000, while employment levels increased by 14,100, just shy of the forecasted 15,000, driven by a rise in part-time work, which offset a decline in full-time positions. For those in the core working age group (25–54), the unemployment rate stayed virtually unchanged at 5.8% for both men and women. Among youth aged 15–24, the unemployment rate remained steady at 13.8% in March, after rising by 1.3 percentage points in February. For individuals aged 55 and older, the unemployment rate held firm at 4.9% for the month. Both the employment rate (60.6%) and the participation rate (64.9%) showed no change in March.

The unemployment rate in Canada rose to 6.7% in February 2026 from the lowest in sixteen months of 6.5% in the previous month and above the expected 6.6% increase, reflecting an increment in the number of people searching for work and a contraction in employment. The increase followed the prior month's decline and reflected a 56,700 rise in the number of unemployed to over 1.51 million. The labour force contracted by roughly 27,200, pushing the participation rate down to 64.9% from 65.0%. Net employment fell by 84,000 to 21.04 million, continuing the recent downward trend. Losses were driven by a 108,000 decline in full-time employment, partly offset by a 24,500 increase in part-time work.

The unemployment rate in Canada fell to 6.5% in January 2026 from 6.8% in the previous month, undershooting market expectations of 6.8% and marking the lowest level in 16 months, as fewer people searched for work. The decline marked a partial reversal of the prior month’s increase and reflected a 94,000 drop in the number of unemployed to around 1.5 million. The labour force contracted by roughly 94,000, pushing the participation rate down to 65.0% from 65.4%. Net employment fell by 25,000 to 21.12 million, interrupting the recent run of gains. Losses were driven by a 70,000 decline in part-time employment, partly offset by a 45,000 increase in full-time work.