Canada’s job market showed signs of strain in February, as payroll employment dropped by 49,000 positions—down 0.3 per cent from January—despite continued growth in average weekly earnings.
The number of employees receiving pay or benefits was still up by 124,300, or 0.7 percent, year over year. However, several key sectors experienced noticeable monthly job losses.
Employment in the education sector fell by 21,300 jobs, reversing the gains recorded in January. The accommodation and food services sector also lost 13,600 positions, bringing the total decline since December to more than 19,000. Retail trade dropped by 10,600 jobs, with cuts seen in pharmacies, general merchandise stores, and building supply retailers.
The manufacturing sector saw a reduction of 6,800 jobs, driven largely by losses in machinery, metal, and chemical production. Employment in automotive manufacturing also declined slightly.
Meanwhile, health care and social assistance continued its upward trend, adding 12,600 new positions. Gains were seen across nursing facilities, hospitals, and social services.
Average weekly earnings in Canada reached $1,298 in February, a 5.4 per cent increase compared to the same time last year. Despite this growth, wages remained flat month-over-month. Average weekly hours worked held steady at 33.5 hours.
Job vacancies remained unchanged for the sixth consecutive month, with 528,000 open positions reported in February. Compared to a year ago, the number of vacancies is down by nearly 20 per cent, with health care, food services, and construction seeing the biggest drops.
The national job vacancy rate was 2.9 per cent—unchanged from January but lower than the 3.7 per cent recorded in February 2024. There were 2.8 unemployed people for every job vacancy, up from 2.0 one year earlier.
Ontario and Manitoba saw increases in job openings, while Quebec recorded the largest decline. Vacancy rates were highest in Manitoba and British Columbia, and lowest in Newfoundland and Labrador.
While wages are holding steady, job losses in key industries and stagnant vacancies point to a slowing employment landscape. Health care remains a notable exception, with steady job growth and high worker demand.