March 18, 2026

Employment declined by 84,000 (-0.4%) in February and the employment rate fell 0.2 percentage points to 60.6%. The unemployment rate increased 0.2 percentage points to 6.7%.

Employment fell among youth aged 15 to 24 years old (-47,000; -1.7%) and men in the core working age of 25 to 54 years old (-41,000; -0.6%). Employment was little changed for core-aged women and people aged 55 years and older.

Employment declines in February were recorded in services-producing industries (-56,000; -0.3%) and goods-producing industries (-28,000; -0.7%). The largest declines were in wholesale and retail trade (-18,000; -0.6%), and ‘other services’ such as personal and repair services (-14,000; -1.8%).

Employment declined in Quebec (-57,000; -1.2%), British Columbia (-20,000; -0.7%), Saskatchewan (-5,500; -0.9%) and Manitoba (-4,000; -0.5%). Employment increased in Newfoundland and Labrador (+2,100; +0.8%) and was little changed in the other provinces.

Average hourly wages among employees were up 3.9% (+$1.42 to $37.56) on a year-over-year basis in February, following growth of 3.3% in January (not seasonally adjusted).

Employment falls in February

Employment declined by 84,000 (-0.4%) in February, after edging down in January (-25,000; -0.1%). These cumulative declines partially offset the upward trend observed in the fall of 2025. On a year-over-year basis, employment was little changed in February 2026.

Chart 1
Employment rate falls in February

In February, the employment rate—the proportion of the population aged 15 and older who are employed—fell 0.2 percentage points to 60.6%, the second consecutive monthly decline. The employment rate in February was just above the recent low of 60.5% observed in August 2025, and was down 0.4 percentage points on a year-over-year basis.

Infographic 1
Employment rate by age group, February 2026

Employment declines concentrated in full-time work and among private sector employees

In February, the number of people working full-time declined by 108,000 (-0.6%), offsetting growth recorded over the previous two months. At the same time, there was little variation in the number of people working part-time in February. On a year-over-year basis, there was little change in the number of people working full-time or part-time.

The number of employees in the private sector fell by 73,000 (-0.5%) in February, the second consecutive monthly decline. These declines offset gains observed in October and November 2025. Compared with 12 months earlier, the number of private sector employees was virtually unchanged in February.

The number of public sector employees and the number of self-employed workers were both little changed in February.

Unemployment rate rises to 6.7%

The unemployment rate rose 0.2 percentage points to 6.7% in February, as employment fell and more people searched for work. The unemployment rate was virtually unchanged from 12 months earlier (when it was 6.6%) and remained below the recent high of 7.1% reached in August and September 2025.

Chart 2
Unemployment rate increases to 6.7% in February

Among the 1.5 million people who were unemployed in February, 22.8% were in long-term unemployment, meaning they had been continuously searching for work for 27 weeks or more. This proportion was little changed from February 2025 (23.0%) but remained significantly above the pre-COVID-19 pandemic average of 17.1% recorded during the period from 2017 to 2019.

The participation rate—the proportion of the population aged 15 and older who were employed or looking for work—fell by 0.1 percentage points to 64.9% in February. It was down 0.4 percentage points on a year-over-year basis.

Unemployment rate up among youth

Among youth aged 15 to 24, the unemployment rate rose 1.3 percentage points to 14.1% in February, as employment for this group fell by 47,000 (-1.7%). The increase brings the youth unemployment rate closer to the recent high of 14.6% reached in September 2025, which was the highest since 2010 (excluding 2020 and 2021). On a year-over-year basis, the youth unemployment rate was up 1.0 percentage points.

Infographic 2
Unemployment rate by age group, February 2026

Unemployment rates for racialized youth were notably higher compared with non-racialized, non-Indigenous youth. For Black youth, the unemployment rate was 23.2% in February, up 4.6 percentage points from 12 months earlier (three-month moving averages, not seasonally adjusted). Among the other largest racialized population groups, the unemployment rate was 17.4% among Chinese youth and 13.0% among South Asian youth. In comparison, the unemployment rate for non-racialized and non-Indigenous youth was 11.2% in February.

Unemployment rate rises for core-aged men

Among core-aged men, the unemployment rate rose 0.3 percentage points to 5.7% in February. This remained below the recent high of 6.3% recorded in August for this group. Employment fell by 41,000 (-0.6%) among core-aged men in February, driven by a decline in full-time work (-54,000; -0.8%). Among core-aged women, the unemployment rate was little changed at 5.8% and employment held steady in February.

The unemployment rate for people aged 55 and older fell 0.2 percentage points to 4.9% in February, the second decrease in the past three months. On a year-over-year basis, the unemployment rate of people aged 55 and older was down 0.3 percentage points.

Employment declines in both services-producing and goods-producing industries

The employment decline in February was spread across services-producing industries (-56,000; -0.3%) and goods-producing industries (-28,000; -0.7%).

In services-producing industries, the largest decline was in wholesale and retail trade (-18,000; -0.6%). Employment in this industry has trended down since October 2025, with a cumulative decline of 52,000 (-1.7%) over this period.

Chart 3
Employment change by industry, February 2026

There were also fewer people working in ‘other services’ (-14,000; -1.8%) in February. This industry includes repair and maintenance services, personal care and laundry services, as well as religious and advocacy activities. Employment in ‘other services’ was little changed on a year-over-year basis.

In goods-producing industries, employment edged down in construction (-12,000; -0.7%) and manufacturing (-9,200; -0.5%) in February. On a year-over-year basis, employment was little changed in construction, while it was down by 52,000 (-2.8%) in manufacturing.

Employment down in Quebec, British Columbia, Saskatchewan and Manitoba

Employment in Quebec declined by 57,000 (-1.2%) in February, following three consecutive months of little change. This was the first significant employment decrease in the province since January 2022. The unemployment rate in Quebec rose 0.7 percentage points to reach 5.9% in February, but remained below the recent peak of 6.2% observed in June 2025.

Map 1
Unemployment rate by province and territory, February 2026

In British Columbia, employment fell by 20,000 (-0.7%) in February. Despite the employment decline, the unemployment rate held steady at 6.1%, as the number of people searching for work held steady. Compared with the same month in 2025, the unemployment rate in British Columbia was virtually unchanged in February.

Employment also declined in Saskatchewan (-5,500; -0.9%) and Manitoba (-4,000; -0.5%) in February, while it increased by 2,100 (+0.8%) in Newfoundland and Labrador. The unemployment rate was little changed in both Saskatchewan (at 5.6%) and Newfoundland and Labrador (at 9.2%). Despite the employment decrease in Manitoba, the unemployment rate in the province fell by 0.6 percentage points to 5.7%, as fewer people searched for work.

In Ontario, employment held steady in February, following a decline of 67,000 (-0.8%) in the previous month. The number of people in Ontario who searched for work increased by 28,000 (+4.3%) in February and the unemployment rate rose by 0.3 percentage points to 7.6%.

Infographic 3
Unemployment rate for Canada (adjusted to US concepts) and the United States

In the spotlight: Women in the labour force

March 8th was International Women’s Day, a global day to recognize the achievements of women and girls and reflect on the progress made towards gender equality, while acknowledging the challenges and barriers that still exist.

In February 2026, there were 10 million women employed in Canada, accounting for 47.3% of total employment. This proportion has risen markedly from when comparable data first became available in the Labour Force Survey 50 years ago. In February 1976, women comprised 36.9% of total employment. Much of the increase occurred in the 1980s.

Among core-aged women (25 to 54 years old), 80.1% were employed in February 2026. In comparison, less than half (48.2%) of core-aged women were employed in 1976. In February 2026, the employment rate for core-aged women was highest in Prince Edward Island (86.6%) and Quebec (83.6%), while it was lowest in Ontario (78.5%).

While men continue to earn more than women on average, the gender wage gap in Canada has declined over time. This reduction is largely explained by changes in the distribution of men and women across occupations; higher levels of educational attainment among women; and the decline in the share of men in unionized employment. In February 2026, women earned on average $0.88 on the dollar compared with men. The average hourly wage for women aged 25 to 54 was $37.62, which was $4.93 (or 11.6%) less than the average hourly wage for men ($42.55) (not seasonally adjusted).

Core-aged women were more likely to work part-time (15.6%) compared with men in this age group (6.4%) in February 2026. Among core-aged women, the most commonly cited main reason for working part-time (24.4%) was caring for children (not seasonally adjusted). Another 23.9% of women worked part-time because they were not able to find full-time hours due to economic or business conditions.

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