Canada's Labour Market Shows Mixed Signals as Jobs Dip and Wages Rise

Note: This section contains information in English only.
Source: Dukascopy Bank SA
In January 2026, employment in Canada edged down slightly, causing the employment rate to fall to 60.8 percent. Despite this, the unemployment rate dropped to 6.5 percent because fewer people were actively looking for work. Part-time jobs declined, while full-time employment increased. Private sector employment fell, while public sector employment remained mostly unchanged. Average hourly wages rose 3.3 percent year-over-year to 37.17 dollars.



Employment declined in manufacturing, educational services, and public administration. Gains were seen in information, culture and recreation, business and support services, agriculture, and utilities. Among demographics, core-aged women experienced a drop in employment, while unemployment rates fell for core-aged men, core-aged women, and youth, mainly because fewer people were searching for work. Regionally, Ontario saw a significant employment decrease, whereas Alberta, Saskatchewan, and Newfoundland and Labrador experienced increases.
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