Canada’s job gains miss expectations

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After three consecutive months of increase, employment in February remained unchanged. During the month, the employment rate also remained stable at 61.1%.

Reuters surveyed economists and expected 20,000 jobs to be seen in the month, while the unemployment rate rose to 6.7%.

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Friday’s employment report is the last major economic release for Canadian banks before their next interest rate decision on March 12. Trade uncertainty with the United States is expected to be significant in the central bank.

Statistics Canada reported an increase in employment in industries such as retail and wholesale trade, which added 51,000 jobs in the month, as well as finance, real estate, insurance and rental rentals, with monthly job gains of 16,000. Employment in occupational, scientific and technical services fell by 1.6%. Employment in transportation and warehousing also fell 2.1% in February, down 2.6% year-on-year.

The population growth of 15 and older was 47,000 in February, less than half of the 97,000 recorded a year ago, the slowest since April 2022.

The private sector employee numbers remained unchanged in February after the increase in December and January. Employment and self-employed in the public sector have also remained stable this month.

Total hours fell by 1.3%, the biggest drop in monthly declines since April 2022. Statistics Canada attributes the major winter storm that caused central and eastern Canada, where 429,000 employees lost their working hours. Wage growth rate in February was 4%, up from 3.7% in January.

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Among core older women this month, employment increased by 0.4%, with little change in employment for core older men following three consecutive increases reported in the past few months. Labor force participation fell in February, down 0.2% to 65.3%, the first decline in five months.

•Email: jgowling@postmedia.com

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