Canada Unemployment Rate Drops to 18-Month Low

EthereumCraftsman · 2026-02-06T13:50:18+00:00

Canada's unemployment rate dropped to 6.5% in January 2026, the lowest in 18 months, with a 94,000 reduction in unemployed individuals. The labor force contracted, resulting in a decline in participation rate and net employment.

EthereumCraftsman

2026-02-06 13:50:18

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The unemployment rate in Canada fell to 6.5% in January 2026 from 6.8% in the previous month, undershooting market expectations of 6.8% and marking the lowest level in 18 months, as fewer people searched for work. The decline marked a partial reversal of the prior month’s increase and reflected a 94,000 drop in the number of unemployed to around 1.5 million. The labour force contracted by roughly 94,000, pushing the participation rate down to 65.0% from 65.4%. Net employment fell by 25,000 to 21.12 million, interrupting the recent run of gains. Losses were driven by a 70,000 decline in part-time employment, partly offset by a 45,000 increase in full-time work.

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