Canada’s labor market was stagnant in February, with employment rising by just 1.1k, falling far short of the expected 17.8k increase.
Unemployment rate held steady at 6.6%, better than expectation of 6.7%, while the labor force participation rate dropped from 65.5% to 65.3%, marking its first decline since September 2024. A notable contraction was seen in total hours worked, which fell by -1.3% mom.
Despite the weak employment figures, wage growth accelerated, with average hourly wages rising 3.8% yoy, up from January’s 3.5% gain.
