Payroll employment in Canada fell in February, reversing January’s increase and leaving overall job levels little changed from a year earlier.
The number of employees receiving pay and benefits dropped by 60,200, or 0.3 percent, following a gain of 44,300 in January. On an annual basis, payroll employment showed no meaningful growth.
Losses were spread across several sectors, led by transportation and warehousing, which shed 14,000 jobs. Administrative and support services, retail trade, construction, and accommodation and food services also recorded declines.
Retail employment fell for a second straight month and was down 26,400 compared with February 2025. The drop was broad, with losses in clothing stores, grocery and convenience retailers, department stores, and building supply outlets. Gains in warehouse clubs and large general merchandise retailers did not offset the declines elsewhere.
Transportation and warehousing employment also edged lower over the year, with declines in trucking and air transport outweighing gains in warehousing and pipeline operations.
Construction employment slipped in February after several months of growth, though it remained higher than a year earlier. Most of the annual gains came from non-residential building, equipment contractors, and specialty trades, while land subdivision declined.
Average weekly earnings rose 1.4 percent from January to $1,338 and were up 3.4 percent from a year earlier. At the same time, average weekly hours were unchanged on the month and lower than a year earlier.
Job vacancies were little changed at 497,200 in February but remained below last year’s level. The vacancy rate held at 2.8 percent, continuing a downward trend from the peak reached in 2022.
There were 3.1 unemployed people for every job vacancy in February, slightly higher than in January and above last year’s level.
Ontario and Quebec recorded the largest annual declines in job vacancies, while Alberta was the only province to post an increase. Vacancy rates were highest in British Columbia, Nova Scotia, and Alberta, and lowest in Newfoundland and Labrador.
The February figures show a labour market with limited job growth, fewer openings, and ongoing pressure in retail and transportation.