Unemployment rate falls to 6.5% in January, StatCan says.

Statistics Canada reports the unemployment rate fell to 6.5 per cent in January, down 0.3 percentage points from December 2025 after 94,000 fewer people looked for work.

Canada’s unemployment rate fell to 6.5 per cent in January, Statistics Canada reported. The decline came as fewer people were looking for a job compared with the month before. The Labour Force Survey data showed 94,000 fewer Canadians searching for work in January. The agency also reported a drop in the labour force participation rate. Key details: - The unemployment rate was 6.5 per cent in January, a 0.3 percentage-point decline from 6.8 per cent in December 2025. - The number of people looking for work fell by 94,000, a 6.1 per cent decrease. - January’s unemployment rate was the lowest since September 2024 and down from a 7.1 per cent peak in August and September 2025. - The labour force participation rate decreased 0.4 percentage points to 65 per cent after a 0.2-point uptick in December. - Statistics Canada said the decline in participation was concentrated in Ontario. Summary: The lower unemployment rate reflects a smaller number of people actively seeking work and brings the jobless rate to its lowest point since September 2024. Undetermined at this time.