Canada faces sharpest job losses since coronavirus pandemic

(Patria) - Canada has lost more than 100,000 full-time jobs since the beginning of 2026, marking the sharpest decline in employment since the coronavirus pandemic.

The latest data, released yesterday, show that the unemployment rate has risen to 6.7 percent, the second-highest rate among the G7 rich countries, just behind France.

These figures put pressure on Prime Minister Mark Carney's government as it tries to protect the economy from the impact of US tariffs, writes the BBC.

The February job losses erased much of the growth recorded late last year, with the wholesale and retail trade sector being the hardest hit.

Prime Minister Carney, commenting on the report, said that US trade measures against Canada "are causing significant adjustments in the Canadian economy".

Carney, who spoke to reporters yesterday during a visit to Norway, also said that wages in the country are generally rising and that the unemployment rate is lower than in March 2025, when he took office. It was 6.8 percent at the time.

The latest employment figures have been described as worrying by some economists, while the opposition Conservative Party called the report "terrible news".

Conservative leader Pierre Poilievre blames Prime Minister Carney's leadership in part for the poor situation, pointing to Canada's weaker economic position compared to its G7 allies.

- It is true that there are global problems and we cannot ignore or control the moves of US President Donald Trump.

However, all countries are facing these tariffs, and in none of them is the economy shrinking as much as ours under Mark Carney's leadership - Poilievre told reporters yesterday.

He made the statement before traveling to the US, where he plans to hold meetings with auto industry leaders and lawmakers to discuss his party's approach to the current trade dispute between Canada and the US.

Since taking office last year, US President Trump has imposed tariffs on key Canadian sectors, including automobiles, steel, and aluminum, leading to the loss of thousands of jobs.

He also imposed separate, broad tariffs, including a new global tariff of 10 percent, although much of Canada's exports are protected from this thanks to the long-standing North American trade agreement USMCA.

However, the future of that agreement is currently uncertain. It is undergoing a mandatory review this year, and Trump has hinted that he would prefer to abolish it or conclude separate trade agreements with Canada and Mexico.

It is precisely this uncertainty that is the main driver of the "worrying reversal" in Canada's employment figures, according to Katherine Judge, senior economist at CIBC Capital Markets.

- This is clearly a very worrying report that shows the labor market has weakened, and business activity has frozen due to trade uncertainty - Judge stated.

The US is by far Canada's largest export market, making the country particularly vulnerable to US tariffs. Approximately three-quarters of Canadian goods were sold in the US, although this share has fallen to about 67 percent in recent months.