Canada Unemployment Jumps to 6.7% in February — Broad Job Losses and Manufacturing Decline
Canada’s unemployment rate rose to 6.7% in February 2025, up 0.5 percentage points from January’s revised 6.2%, the highest level since August 2023, according to Statistics Canada (survey week Feb 9–15). Employment fell by 34,000 while the number of unemployed increased by about 103,000 to roughly 1.4 million. The employment rate dropped to 61.4% and labour force participation held near 65.8%. Youth unemployment jumped to 12.8%; core-age (25–54) rose to 5.6% and 55+ to 5.9%. Regionally, Alberta (7.2%), Ontario (6.9%), British Columbia (6.5%) and Quebec (6.1%) all saw increases; Newfoundland and Labrador recorded the highest provincial rate at 8.1%. The goods-producing sector lost 24,000 jobs — manufacturing shed 16,000 and construction 8,000 — while services fell by 10,000 (notable losses in professional services and information/culture). Healthcare (+9,000) and accommodation & food services (+7,000) added jobs. Average hourly wages rose 4.2% year-on-year, down from 4.5% in January, signaling moderating wage growth amid rising unemployment and underemployment (people working <50% usual hours up 3.2%). Economists cite global demand weakness, higher interest rates, and sector-specific pressures (manufacturing, energy) as drivers. Market watchers expect policymakers — including the Bank of Canada and federal/provincial governments — to weigh monetary and fiscal responses. Bloomberg-surveyed economists now forecast average 2025 unemployment of about 6.4%. Key keywords: Canada unemployment, job cuts, manufacturing decline, labour market, economic data.
Bearish
Rising unemployment and notable job losses — especially in manufacturing and construction — increase economic downside risk, which is typically negative for risk assets including cryptocurrencies. Higher unemployment suggests weaker consumer spending and slower GDP growth, increasing the likelihood of reduced investor risk appetite. Wage growth moderating alongside rising underemployment reduces inflationary pressure, which could limit the Bank of Canada’s need for further rate hikes but also signal weaker economic momentum. In the short term, crypto markets may see increased volatility and risk-off flows as traders reprice macro risk and move into safe-haven assets or stablecoins. Historically, macro downturns and rising unemployment (e.g., 2020 pandemic onset; 2022 growth scares) correlated with sharp crypto drawdowns or heightened intraday volatility. Over the medium-to-long term, weaker macro activity can reduce institutional inflows and speculative capital into crypto, weighing on demand and price appreciation unless offset by policy stimulus or renewed on-chain adoption narratives. Therefore the immediate market reaction is likely bearish-to-volatile unless accompanied by clear monetary easing or fiscal support that restores risk appetite.