Canada: Surprise Drop in February Employment Gives the BoC Reason to Stay on the Sidelines March 13, 2026

Despite the sharp drop in employment, the unemployment rate increased by a relatively modest 0.2 to 6.7%. This was in part due to a 0.1 drop in the participation to 64.9%-it's lowest level since 2021. The unemployment rate for core-aged workers ticked up 0.2 to 5.7% in the month. Among youth it rose more sharply-up 1.3 to 14.1%. This occurred despite the youth population in Canada declining by 36k since last summer.

In recognition of International Women's Day, Statistics Canada highlighted women's employment across the country. The employment rate for women in February was highest in and Quebec, at 86.6% and 83.6%, and lowest in Ontario at 78.5%. This aligns with our recent workExternal link. on the role of available and affordable childcare in supporting women's employment.