February 18, 2026

Employment edged down in January (-25,000; -0.1%) and the employment rate decreased 0.1 percentage points to 60.8%.

The unemployment rate fell by 0.3 percentage points to 6.5%, as fewer people searched for work.

In January, employment fell by 27,000 (-0.4%) among core-aged women (25 to 54 years old). There was little employment change among the other major demographic groups.

Fewer people were employed in manufacturing (-28,000; -1.5%), educational services (-24,000; -1.5%) and public administration (-10,000; -0.8%). At the same time, employment increased in information, culture and recreation (+17,000; +2.0%), business, building and other support services (+14,000; +2.1%), agriculture (+11,000; +4.5%) and utilities (+4,200; +2.5%).

Employment decreased in Ontario (-67,000; -0.8%), while it rose in Alberta (+20,000; +0.8%), Saskatchewan (+6,100; +1.0%) and Newfoundland and Labrador (+3,800; +1.6%). There was little change in the other provinces.

Average hourly wages among employees were up 3.3% (+$1.18 to $37.17) on a year-over-year basis in January, following growth of 3.4% in December (not seasonally adjusted).

Employment edges down in January

Overall employment edged down in January (-25,000; -0.1%), following little change in December.

Chart 1
Employment rate down in January 2026

Infographic 1
Employment rate by age group, January 2026

In January, a decrease in part-time employment (-70,000; -1.8%) was partly offset by a gain in full-time work (+45,000; +0.3%). Compared with 12 months earlier, overall employment was up by 134,000 (+0.6%), driven by gains in full-time work (+149,000; +0.9%).

The employment rate—the proportion of the population aged 15 and older who were employed—fell 0.1 percentage points to 60.8%. This was the first decline in the employment rate since August 2025.

The number of private sector employees fell by 52,000 (-0.4%) in January, partly offsetting a net increase of 128,000 (+0.9%) in the last three months of 2025. There was little change in the number of public sector employees (+13,000; +0.3%) and self-employed workers (+14,000; +0.5%) in January.

Unemployment rate falls to 6.5%, as fewer people search for work

The unemployment rate fell by 0.3 percentage points to 6.5% in January, driven by a decline in the number of people searching for work (-94,000; -6.1%). The unemployment rate in January was the lowest since September 2024 and was down 0.6 percentage points from the recent high of 7.1% recorded in August and September 2025.

Chart 2
Unemployment rate falls to 6.5% in January 2026

The labour force participation rate—the proportion of the population aged 15 and older who were employed or looking for work—decreased 0.4 percentage points to 65.0% in January, following an increase of 0.2 percentage points in December. The decline in January was concentrated in Ontario.

For more information about the composition of the population that is not participating in the labour force, see the “Population not participating in the labour force” text box.

Decreases in unemployment rate across major demographic groups

The unemployment rate fell across most major demographic groups in January, largely reflecting declines in the number of job searchers.

Infographic 2
Unemployment rate by age group, January 2026

Among core-aged (25 to 54 years old) men, the unemployment rate decreased 0.6 percentage points to 5.4% in January, the lowest level since July 2024. Employment among core-aged men held steady in January, but there were fewer searching for work (-49,000; -10.4%).

The unemployment rate for core-aged women fell 0.2 percentage points to 5.7% in January, partially offsetting a 0.3 percentage point increase in the previous month. There were decreases in January both in the number of core-aged women who were employed (-27,000; -0.4%) and looking for work (-23,000; -5.4%).

Among youth (15 to 24 years old), the unemployment rate fell 0.5 percentage points to 12.8% in January, as the number of employed youth was little changed and fewer searched for work. The youth unemployment rate was 1.8 percentage points below the recent high of 14.6% recorded in September 2025.

The unemployment rate among people aged 55 and older was unchanged at 5.1% in January.

Population not participating in the labour force

There were 12.4 million people aged 15 and older who were not participating in the labour force in January, meaning they were neither employed nor looking for work. This number was up 2.7% from January 2025 (not seasonally adjusted).

Population aging and other socio-economic changes, such as trends in school enrolment and labour market conditions, can have an impact on labour force participation. People may be outside the labour force at different ages for a variety of reasons.

For youth aged 15 to 24, the vast majority who were not in the labour force in January reported their main activity was attending school (89.0%). This share was up 2.2 percentage points from 12 months earlier.

Among core-aged men and women who were not in the labour force in January, 25.9% were caring for children and 23.2% had an illness or disability. For people aged 55 and older, most said they were retired (79.9%). These shares were little changed compared with January 2025.

In addition, people may not participate in the labour force because they believe no work is available (in their area or suited to their skills) and as a result, they do not search for work. In January, only 0.3% of those aged 15 and older outside the labour force were discouraged job seekers (representing 34,000 people). This share was up slightly (+0.1 percentage points) compared with 12 months earlier.

Fewer people employed in manufacturing

The number of people working in manufacturing fell by 28,000 (-1.5%) in January, bringing employment down to levels last observed in August 2025. The decline in January was concentrated in Ontario. On a year-over-year basis, overall employment in manufacturing was down 51,000 (-2.7%).

Chart 3
Employment change by industry, January 2026

There were also fewer workers in educational services (-24,000; -1.5%) and public administration (-10,000; -0.8%) in January. Employment in both industries was little changed on a year-over-year basis.

On the other hand, employment increased in information, culture and recreation (+17,000; +2.0%) in January, continuing an upward trend that began in September 2025. On a year-over-year basis, employment in this industry was up 30,000 (+3.6%) in January.

Employment also rose in business, building and other support services (+14,000; +2.1%) in January, the first increase since October 2024. Employment in this industry had previously followed a downward trend through most of 2025. Compared with 12 months earlier, employment in business, building and other support services was down 38,000 (-5.3%) in January.

Employment down in Ontario

Employment in Ontario fell by 67,000 (-0.8%) in January. Despite the employment decrease, the unemployment rate fell by 0.6 percentage points to 7.3% in January, as fewer people searched for work.

Map 1
Unemployment rate by province and territory, January 2026

The labour force participation rate in Ontario fell by 1.0 percentage points to 64.4% in January, more than offsetting the 0.6 percentage point increase recorded in December. Across major age groups, the decline in the participation rate in Ontario in January was largest among youth aged 15 to 24 (-2.7 percentage points to 58.9%).

In Alberta, employment increased by 20,000 (+0.8%), bringing net gains since January 2025 to 86,000 (+3.4%). The unemployment rate in the province edged down to 6.4% in January.

Employment also rose in Saskatchewan (+6,100; +1.0%) and in Newfoundland and Labrador (+3,800; +1.6%) in January. These gains contributed to decreases in the unemployment rate in both provinces (down 1.1 percentage points to 5.3% in Saskatchewan and down 1.3 percentage points to 9.2% in Newfoundland and Labrador).

In the spotlight: More permanent core-aged employees in industries dependent on US demand plan to leave their job in the next 12 months

Shifting economic conditions can shape workers’ intentions to stay or leave their current jobs, and employees tend to be more likely to seek other opportunities when labour market conditions are favourable. At the same time, uncertainty in a particular industry or line of work can push employees to make plans to leave.

According to additional data collected in the Labour Force Survey in January, 7.1% of permanent employees aged 15 to 69 planned to leave their job in the next 12 months, up 1.0 percentage points from 12 months earlier. This increase coincided with a decline in the unemployment rate over the same period (from 6.7% to 6.5%).

Among permanent employees, youth aged 15 to 24 (13.3%) were more likely to plan to leave their job over the next 12 months, compared with their counterparts aged 25 to 54 (5.8%) and aged 55 to 69 (7.9%). From January 2025 to January 2026, the share rose the most among youth (+2.5 percentage points).

For youth, returning to school (32.1%) and career change or advancement (29.2%) were the most common main reasons for planning to leave their job. Meanwhile, core-aged employees were most often motivated by career change or advancement (38.8%) and concerns about low pay (17.1%).

Certain Canadian industries face greater exposure to tariff-related trade disruptions, creating uneven levels of uncertainty among workers. In January 2026, 5.4% of permanent core-aged employees in industries dependent on US demand for Canadian exports were planning to leave their jobs in the next 12 months, up 1.5 percentage points from January 2025. The corresponding share also rose in other industries, but to a smaller extent (from 5.2% to 5.9%).

In prior years, the share of permanent employees who were planning to leave their job had been lower among employees working in industries dependent on US demand for Canadian exports. These employees are more likely to have full-time hours and above-average wages relative to other industries.

Further, among core-aged permanent employees who were planning to leave their jobs, two thirds (65.8%) of those in industries dependent on US demand for exports reported that they had actively engaged in activities to look for a new job in the previous four weeks, such as answering job ads or contacting employers. The corresponding proportion in other industries was lower, at 48.6%.

Source