BREAKING: Canada’s Job Market Collapse - Economy Sheds 83,900 Jobs as Unemployment Soars

Canada's labor market plunged into crisis in February 2026, shedding a staggering 83,900 jobs and pushing the unemployment rate to 6.7% as full-time employment evaporated. The devastating data released Friday by Statistics Canada reveals an economy buckling under pressure, compounding existing strains from ongoing U.S. tariff tensions.

The report missed analysts’ expectations of a job gain of 10,000 and an unemployment rate of 6.6%. In the previous month, the economy lost 24,800 jobs, and the jobless rate was at a 16-month low of 6.5%.

“No sense sugar-coating this one, this is simply a brutal result,” Doug Porter, chief economist with BMO Capital Markets, wrote in a note. “The underlying story so far in 2026 is one of weakness…. And now, the economy has to contend with higher energy costs flowing from the Iran conflict.”

On the bright side, there were some positive notes from Canada’s latest jobs report. For example, the average hourly wage of permanent employees grows 4.2%. Furthermore, Canada and the United States are engaged in bilateral talks to reduce the impact of tariffs and for the review of a three-nation free trade pact also involving Mexico before July 1. Should these talks go well and the pact become official, the negative impact felt on Canada’s economy could be eased.