Canada Unemployment Rate by Province and City

Harsh winter weather cooled Canada’s labour market in February as employers prepared for potential fallout from an escalating trade dispute with the United States.

Statistics Canada reported on Friday that the Canadian economy added only 1,100 jobs in February, well below expectations and far shy of the 76,000 positions added in January. The modest gain was enough to keep the national unemployment rate unchanged at 6.6%.

That steady unemployment rate coincided with the slowest monthly population growth Canada has seen since April 2022, a factor that also helps explain the muted employment numbers.

Brendon Bernard, a senior economist at the job site Indeed, said stability in the unemployment rate suggests employers were not conducting widespread layoffs ahead of the looming tariffs from the United States. “There’s potential trouble ahead for the job market, but that’s not what we saw in February,” he said.

The trade measures announced by the U.S. took effect on March 4, with some adjustments made to the initial list of tariffs. Policymakers in Ottawa and business groups warned the measures could create further headwinds for Canadian firms in the weeks and months ahead.

Besides tariffs, what weighed on the Canadian job market?

On Friday, Ottawa unveiled a $6‑billion support package intended to help businesses weather disruptions tied to the U.S. trade measures. That fiscal response aims to blunt immediate harm to exporters and supply chains.

In addition to trade concerns, a string of major snowstorms across Central and Eastern Canada had a pronounced impact on labour market activity in February. Statistics Canada estimates that about 429,000 Canadians lost work hours because of the storms—more than four times the five‑year February average. Total hours worked fell 1.3% for the month, the largest monthly decline since April 2022.

James Orlando, director of economics at TD Bank, noted that the severe winter weather was the “likely culprit” behind the weak employment results for February, while also acknowledging that anxiety over impending tariffs may have begun to affect business decisions and hiring plans.

“Fortunately, the Canadian labour market entered the tariff dispute from a position of relative strength,” Orlando said, “which matters as the economy faces fresh external shocks.”

Canada’s mixed employment picture

Statistics Canada’s breakdown shows the composition of job changes was mixed: the country lost 19,700 full‑time positions in February while adding 20,800 part‑time roles. Sector results varied widely.

Job growth was concentrated in wholesale and retail trade, and in the combined finance, insurance, real estate, rental and leasing sectors. Those gains were offset by declines in professional, scientific and technical services, as well as transportation and warehousing.

Manufacturing, which led job gains in January, contracted by 4,800 positions in February overall. Ontario stood out as an exception, adding 10,800 manufacturing jobs during the month—almost offsetting its January gains. Economists view manufacturing as a key indicator for how tariffs could ripple through employment and production.

Bernard pointed out that while payroll data did not yet show mass job losses in manufacturing, online job listings for manufacturing and production roles on Indeed fell by roughly 7% in February, a sign that hiring may slow in coming months.

“At this stage, the clouds are forming on the horizon rather than a storm raging today,” he observed.

What this means for the Bank of Canada

Friday’s jobs report is the last major piece of labour market data the Bank of Canada will see ahead of its March 12 policy decision. Markets and economists were watching the report closely for signals about the next move in interest rates.

Financial markets had been leaning toward a quarter‑point rate cut prior to the trade measures, although sentiment shifted during the lead-up to the tariffs. CIBC Capital Markets senior economist Andrew Grantham argued that the hiring slowdown in February, together with the economic risks from the trade dispute, should push the Bank of Canada toward another 25 basis‑point cut.

Economists at RBC described the decision as finely balanced. RBC’s team remains officially in favour of a hold, but assistant chief economist Nathan Janzen said the odds of a cut are roughly even and could tilt in either direction depending on economic developments and new data released before the Bank meets.

Unemployment rate by province

Canada’s national unemployment rate was 6.6% in February. Provincial jobless rates for the month were as follows (previous month in brackets):

• Newfoundland and Labrador: 10.5% (10.6%)
• Prince Edward Island: 7.8% (7.2%)
• Nova Scotia: 6.6% (5.9%)
• New Brunswick: 7.5% (6.4%)
• Quebec: 5.3% (5.4%)
• Ontario: 7.3% (7.6%)
• Manitoba: 6.1% (6.1%)
• Saskatchewan: 5.4% (5.4%)
• Alberta: 6.7% (6.7%)
• British Columbia: 6.0% (6.0%)

Unemployment rate by city

Statistics Canada also published seasonally adjusted, three‑month moving average unemployment rates for major census metropolitan areas. These city‑level estimates are based on relatively small samples and can fluctuate, so they should be interpreted with caution. The most recent rates (previous month in brackets) are:

• St. John’s, N.L.: 7.0% (6.8%)
• Halifax: 5.0% (5.0%)
• Moncton, N.B.: 5.1% (5.1%)
• Saint John, N.B.: 7.2% (6.9%)
• Fredericton: 7.2% (7.4%)
• Saguenay, Que.: 3.1% (3.3%)
• Quebec City: 4.6% (4.7%)
• Sherbrooke, Que.: 4.9% (5.0%)
• Trois‑Rivières, Que.: 4.6% (4.9%)
• Drummondville, Que.: 5.8% (5.9%)
• Montreal: 6.3% (6.5%)
• Gatineau, Que.: 5.2% (5.4%)
• Ottawa: 5.5% (5.8%)
• Kingston, Ont.: 6.3% (6.2%)
• Belleville‑Quinte West, Ont.: 7.6% (8.3%)
• Peterborough, Ont.: 7.5% (6.1%)
• Oshawa, Ont.: 8.2% (8.2%)
• Toronto: 8.6% (8.8%)
• Hamilton, Ont.: 7.4% (7.5%)
• St. Catharines‑Niagara, Ont.: 6.0% (6.1%)
• Kitchener‑Cambridge‑Waterloo, Ont.: 8.3% (8.0%)
• Brantford, Ont.: 5.3% (5.0%)
• Guelph, Ont.: 7.1% (7.8%)
• London, Ont.: 6.6% (7.0%)
• Windsor, Ont.: 9.4% (9.1%)
• Barrie, Ont.: 5.6% (5.8%)
• Greater Sudbury, Ont.: 6.0% (5.9%)
• Thunder Bay, Ont.: 4.9% (5.1%)
• Winnipeg: 6.2% (6.3%)
• Regina: 7.2% (7.0%)
• Saskatoon: 4.7% (4.8%)
• Lethbridge, Alta.: 5.0% (5.2%)
• Calgary: 7.3% (7.7%)
• Red Deer, Alta.: 9.6% (9.7%)
• Edmonton: 7.1% (7.2%)
• Kelowna, B.C.: 5.3% (4.9%)
• Kamloops, B.C.: 4.8% (4.8%)
• Chilliwack, B.C.: 7.0% (6.8%)
• Abbotsford‑Mission, B.C.: 5.5% (5.2%)
• Vancouver: 6.8% (6.6%)
• Victoria: 3.5% (3.6%)
• Nanaimo, B.C.: 6.0% (7.1%)

Read more about the economy

• How to prepare for possible job loss in Canada
• Here’s the latest as the U.S. imposes tariffs on goods from Canada and Mexico
• How much will the tariffs cost Canada and Canadians?
• Canadians’ financial stress grows despite interest rate cuts