February 6, 2026
RED FM News Desk
According to the latest Labour Force Survey from Statistics Canada, the Canadian economy lost 25,000 jobs in the first month of the year. Despite the decline in employment, the national unemployment rate unexpectedly dropped to 6.5%, down from 6.8% in December.
The drop in the unemployment rate is being attributed to a shrinking labor force rather than job growth. StatCan noted that the rate fell primarily because fewer people were actively looking for work. Currently, approximately 12 million people aged 15 and older are not part of the labor force. Among them, roughly 0.3% are classified as “discouraged job seekers”—individuals who have stopped searching because they believe no work is available that matches their skills.
The job losses in January were largely concentrated in the private sector and among part-time positions. The demographic hit hardest by this trend was women between the ages of 25 and 54.
The manufacturing sector continues to face significant challenges, losing 28,000 positions last month alone. Over the past year, the industry has shed a total of 51,000 jobs. Economic experts suggest that the sector is struggling under the weight of U.S. tariffs, which have caused substantial financial strain on Canadian production.
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