Canada sheds 25,000 jobs in January as manufacturing and Ontario weaken

Statistics Canada reported Canada lost about 25,000 jobs in January, led by a 28,000 decline in manufacturing and a 67,000 drop in Ontario; the unemployment rate fell to 6.5% as labour-force participation declined.

Canada lost almost 25,000 jobs in January, Statistics Canada reported, with losses concentrated in manufacturing and in Ontario. The unemployment rate fell to 6.5 percent as the number of people participating in the labour market declined. Manufacturing employment fell by 28,000 and Ontario recorded a 67,000-job decline, while full-time positions rose and Alberta posted a jobs gain. Economists and the Bank of Canada noted structural factors, including U.S. tariffs, slower population growth and an aging workforce, as part of the context. Key figures: - About 25,000 jobs were shed nationwide in January, according to Statistics Canada. - The unemployment rate fell to 6.5% as labour-force participation declined by roughly 119,000. - Manufacturing employment declined by 28,000; Ontario lost about 67,000 positions; full-time employment rose by 45,000 and Alberta added about 20,000 jobs. - Officials and economists pointed to structural changes — including tariffs, slower population growth and an aging population — and the Bank of Canada said it expects little labour-force growth in 2026. Summary: The January report shows job losses focused in manufacturing and in Ontario while the unemployment rate fell because fewer people were active in the labour market. Officials described the situation as reflecting structural shifts such as trade disruptions and demographic change. Undetermined at this time.