Canada’s unemployment rate falls to 6.5% in January even as employment slips
Latest news on WhatsApp أجدد الأخبار على واتسابStatistics Canada’s Labour Force Survey shows the unemployment rate fell to 6.5% in January 2026 from 6.8% in December, even as total employment edged down by about 25,000. The agency said the drop in unemployment was mainly driven by fewer people searching for work, with the number of job seekers down by roughly 94,000.
The report suggests a shift in job composition: part-time employment fell by about 70,000, partly offset by a gain of roughly 45,000 in full-time work. At the same time, the labour force participation rate declined to 65.0%, with the drop concentrated in Ontario, and the employment rate slipped to 60.8%, its first decline since August 2025.
By industry, employment fell in manufacturing, educational services, and public administration, while gains were reported in information, culture and recreation, business support services, agriculture, and utilities. Average hourly wages were up 3.3% year over year to $37.17, signalling continued cost pressure even as job growth softens.
For households and newcomers entering the labour market, the headline unemployment improvement may offer limited comfort if it reflects reduced participation rather than stronger hiring. Slower job creation can affect how quickly first-time job seekers secure stable work and can shape consumer spending momentum in the months ahead
