Canada’s unemployment rate dropped to 6.5% in January, down 0.3 percentage points from December, as fewer people searched for work, according to Statistics Canada’s Labour Force Survey released today.
The decline marks the lowest unemployment rate since September 2024 and sits 0.6 percentage points below the recent high of 7.1% recorded in August and September 2025.
Employment edged down by 25,000 positions in January, a decrease of 0.1%, while the employment rate fell 0.1 percentage points to 60.8%. The unemployment rate dropped primarily because 94,000 fewer people were actively looking for work, a decrease of 6.1%.
Core-aged women see employment decline
Employment among core-aged women aged 25 to 54 fell by 27,000 positions in January, a decrease of 0.4%. The unemployment rate for this group dropped 0.2 percentage points to 5.7%.
Among core-aged men, the unemployment rate decreased 0.6 percentage points to 5.4%, the lowest level since July 2024. Employment held steady, but 49,000 fewer men in this age group searched for work.
Youth unemployment fell 0.5 percentage points to 12.8%, down 1.8 percentage points from the September 2025 high of 14.6%.
Labour force participation drops
The labour force participation rate decreased 0.4 percentage points to 65.0% in January, following a 0.2 percentage point increase in December. The decline was concentrated in Ontario.
Part-time employment fell by 70,000 positions in January, while full-time work increased by 45,000 positions. Private sector employment decreased by 52,000 positions, partly offsetting gains of 128,000 positions in the final three months of 2025.
Manufacturing sector sheds jobs
Manufacturing employment fell by 28,000 positions in January, a decrease of 1.5%, bringing the sector down to levels last seen in August 2025. The decline was concentrated in Ontario. Year-over-year, manufacturing employment was down 51,000 positions.
Educational services lost 24,000 positions and public administration shed 10,000 jobs in January.
Employment increased in information, culture and recreation, up 17,000 positions, continuing an upward trend that began in September 2025. Business, building and other support services added 14,000 positions, the first increase since October 2024.
Ontario drives provincial employment changes
Employment in Ontario fell by 67,000 positions in January, a decrease of 0.8%. Despite the employment decline, the province’s unemployment rate fell 0.6 percentage points to 7.3% as fewer people searched for work.
The labour force participation rate in Ontario dropped 1.0 percentage point to 64.4%, with the largest decline among youth aged 15 to 24, down 2.7 percentage points to 58.9%.
Alberta added 20,000 positions, bringing net gains since January 2025 to 86,000 positions, an increase of 3.4%. Saskatchewan added 6,100 positions and Newfoundland and Labrador gained 3,800 jobs.
Wage growth slows slightly
Average hourly wages among employees increased 3.3% year-over-year in January, up $1.18 to $37.17, following growth of 3.4% in December.
Workers in export-dependent industries plan job changes
Among permanent employees aged 15 to 69, 7.1% planned to leave their jobs in the next 12 months, up 1.0 percentage point from January 2025, according to supplementary Labour Force Survey data.
Among permanent core-aged employees in industries dependent on US demand for Canadian exports, 5.4% planned to leave their jobs in the next 12 months, up 1.5 percentage points from January 2025. Two-thirds of these employees had actively looked for new jobs in the previous four weeks.
Youth aged 15 to 24 were most likely to plan job changes at 13.3%, with returning to school and career change or advancement cited as the main reasons. Among core-aged employees, career advancement and concerns about low pay were the primary motivations.
Provincial breakdowns
Here are the jobless rates last month by province (numbers from the previous month in brackets):
| Province | January 2026 | December 2025 |
|---|---|---|
| Newfoundland and Labrador | 9.2% | 10.5% |
| Prince Edward Island | 7.6% | 7.1% |
| Nova Scotia | 6.9% | 6.4% |
| New Brunswick | 6.7% | 6.5% |
| Quebec | 5.2% | 5.3% |
| Ontario | 7.3% | 7.9% |
| Manitoba | 6.3% | 5.7% |
| Saskatchewan | 5.3% | 6.4% |
| Alberta | 6.4% | 6.7% |
| British Columbia | 6.1% | 6.3% |
City breakdowns
| City | January 2026 | December 2025 |
|---|---|---|
| St. John’s, N.L. | 7.7% | 7.8% |
| Halifax | 5.8% | 5.7% |
| Moncton, N.B. | 5.6% | 5.8% |
| Saint John, N.B. | 5.6% | 6.0% |
| Fredericton | 5.8% | 6.2% |
| Saguenay, Que. | 4.1% | 4.8% |
| Quebec City | 3.0% | 3.3% |
| Sherbrooke, Que. | 5.1% | 5.6% |
| Trois-Rivières, Que. | 3.9% | 3.8% |
| Drummondville, Que. | 4.7% | 4.7% |
| Montreal | 6.1% | 5.9% |
| Gatineau, Que. | 6.7% | 7.3% |
| Ottawa | 7.0% | 7.3% |
| Kingston, Ont. | 6.0% | 6.2% |
| Belleville-Quinte West, Ont. | 10.0% | 10.6% |
| Peterborough, Ont. | 6.6% | 6.7% |
| Oshawa, Ont. | 8.1% | 8.5% |
| Toronto | 7.9% | 8.1% |
| Hamilton, Ont. | 7.4% | 7.2% |
| St. Catharines-Niagara, Ont. | 7.3% | 7.1% |
| Kitchener-Cambridge-Waterloo, Ont. | 8.3% | 8.3% |
| Brantford, Ont. | 8.7% | 9.3% |
| Guelph, Ont. | 7.0% | 7.8% |
| London, Ont. | 8.2% | 7.7% |
| Windsor, Ont. | 8.1% | 7.6% |
| Barrie, Ont. | 8.3% | 8.5% |
| Greater Sudbury, Ont. | 6.7% | 6.7% |
| Thunder Bay, Ont. | 4.6% | 4.6% |
| Winnipeg | 6.3% | 6.2% |
| Regina | 7.2% | 6.9% |
| Saskatoon | 6.0% | 6.3% |
| Lethbridge, Alta. | 7.4% | 7.5% |
| Calgary | 6.7% | 6.8% |
| Red Deer, Alta. | 8.1% | 9.0% |
| Edmonton | 6.8% | 7.5% |
| Kelowna, B.C. | 6.8% | 8.3% |
| Kamloops, B.C. | 4.8% | 7.4% |
| Chilliwack, B.C. | 7.2% | 7.5% |
| Abbotsford-Mission, B.C. | 6.3% | 6.8% |
| Vancouver | 6.3% | 6.3% |
| Victoria | 4.4% | 4.3% |
| Nanaimo, B.C. | 6.6% | 6.5% |
