Job Shock: Canada Loses 100K Jobs Early

Canada’s labour market faces turmoil as over 100,000 jobs disappear in early 2026, pushing unemployment to 6.7% and raising concerns over tariffs and trade uncertainty.

sarah

Mar 14, 2026 - 07:59

Job Shock: Canada Loses 100K Jobs Early

Since the beginning of 2026, Canadians have lost more than 100,000 full-time jobs. This has increased pressure on Prime Minister Mark Carney's government as it attempts to shield the economy from the impact of U.S. tariffs on Canada.

According to fresh labor statistics released on Friday, Canada's unemployment rate has risen to 6.7%—the second-highest rate among the wealthy G7 nations, trailing only France.

February saw the largest decline in employment since the COVID-19 pandemic; this wiped out most of the job gains achieved late last year, with the wholesale and retail trade sectors suffering the heaviest losses.

Reacting to this report, Carney stated that U.S. trade measures against Canada are "bringing about major changes in the Canadian economy."

Carney, who spoke to reporters on Friday while visiting Norway, also noted that overall wage growth has occurred in the country and that the unemployment rate remains lower than it was when he took office in March 2025, at which time it stood at 6.8%.

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Production at a Scottish smelter has increased due to Trump's tariffs.

Some economists described the latest employment figures as concerning, while the opposition Conservative Party termed the report "very bad news."

Conservative leader Pierre Poilievre attributed this, in part, to Carney's leadership, highlighting Canada's weak economic standing relative to its G7 allies.

Speaking to reporters on Friday, Poilievre said, "It is true that we face global challenges, and we cannot ignore—or attempt to control—the actions of President (Donald) Trump." "But all countries are facing these tariffs. None of their economies are shrinking the way ours is—as is currently happening to us in Canada under the leadership of Mark Carney."

Poilievre made these remarks ahead of his trip to the United States; during this visit, he plans to meet with automotive industry executives and lawmakers to discuss his party's perspective on the ongoing trade dispute between Canada and the U.S.

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Since taking office last year, Trump has imposed tariffs on key Canadian sectors—such as automobiles, steel, and aluminum—resulting in the loss of thousands of jobs. Separately, Trump has also imposed broader tariffs, including a new 10% duty applicable globally. However, many Canadian exports remain exempt from these tariffs thanks to the revamped North American trade agreement known as the USMCA.

The future of the USMCA currently remains uncertain. It is undergoing a mandatory review this year, and Trump has signaled that he may be inclined to terminate the agreement or pursue separate trade deals with Canada and Mexico.

Katherine Judge, a Senior Economist at CIBC Capital Markets, stated that it is precisely this uncertainty that is causing Canada's employment figures to take a "worrying turn."

"This is clearly a very concerning report," she wrote on Friday, "demonstrating that the labor market has softened and that economic activity has stalled amidst the uncertainty surrounding trade."

The United States remains Canada's largest export market by far, making Canada particularly vulnerable to the impact of U.S. tariffs. Historically, approximately three-quarters of Canadian goods were sold to the U.S., although in recent months, this share has declined to roughly 67%.

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