Job losses widen as Canada sheds nearly 25,000 jobs in January

(Ottawa, 9th) Canada lost 24,800 jobs in January, marking the largest monthly decline since August last year, with manufacturing recording the heaviest losses as US tariffs continued to weigh on the sector. However, a decline in the number of people seeking work helped offset the rise in unemployment, pushing the jobless rate down to 6.5%.

Economists had earlier forecast a modest gain of 5,000 jobs in January, with the unemployment rate holding steady at 6.8%.

The labour market impact was most severe in Ontario, which shed 67,000 jobs. The province, Canada’s most populous region and a key automotive hub, has been particularly affected by tariff policies under US President Donald Trump.

General Motors has laid off 500 workers at its Oshawa, Ontario plant and eliminated one production shift. Nationwide, manufacturing employment has fallen by 51,000 positions since last year.

Trade Tensions Fuel Job Exit Concerns

A January labour force survey by Statistics Canada suggests that trade tensions may be prompting workers in US-dependent industries to consider leaving their jobs. The survey found that 5.4% of core-aged permanent employees in such industries plan to quit within the next 12 months—1.5 percentage points higher than a year earlier, compared with a 0.7-point increase in other sectors.

The drop in the unemployment rate was also driven by a decline in labour force participation, which fell 0.4 percentage points to 65%, indicating fewer Canadians were actively seeking work.