By Nojoud Al Mallees
(Bloomberg) — The Canadian economy lost the most jobs in more than four years last month, driving the unemployment rate up to 6.7%.
Employment fell by 83,900 in February, with losses concentrated in full-time and private sector work, according to Statistics Canada data released Friday.
That followed a 25,000 employment decrease in January, when the unemployment rate was 6.5%.
Economists surveyed by Bloomberg were expecting employment to rise 10,000, and for the jobless rate to tick up to 6.6%.
February marked the largest decline in employment since January 2022, when COVID-19 public health measures had shuttered the economy.
The job losses suggest the labour market remains soft as the economy bears the weight of US tariffs and an upcoming review of the USMCA looms over businesses.
The weaker employment data also complicate the Bank of Canada’s future path for monetary policy. While today’s figures point to mounting economic slack, policymakers must also account for higher oil prices from the ongoing conflict in Iran, which are likely to boost inflation and growth in Canada.
The central bank next sets rates March 18, and markets and economists expect officials will hold the policy rate at 2.25%.
Employment losses last month were concentrated among youth aged 15 to 24 years old, and men between the ages of 25 to 54. The youth unemployment rate rose to 14.1%, climbing back toward the recent high of 14.6% recording in September, which was the highest since 2010 outside of the pandemic.
Employment declines experienced across goods-producing and services-producing industries, with the largest decrease recorded in wholesale and retail trade.
Meanwhile, hourly wages for full-time permanent employees rose 4.2% from a year ago, compared with 3.3% in January. Economists surveyed were expecting a 3.2% increase.
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