Canada’s labour market showed signs of stagnation in February, with Statistics Canada reporting a steady employment rate after three months of growth. Todd Hirsch, economist, author, and speaker based in Calgary, discussed the recent Labour Force survey findings, noting that while employment did not decrease, the market remained largely unchanged.
Hirsch attributed the lack of growth to uncertainty surrounding tariffs, particularly after a series of on-again, off-again trade policies. The survey, conducted between February 9 and 15, coincided with the volatile tariff situation, which left employers hesitant to make hiring decisions. Hirsch explained that employers were in a “holding pattern,” bracing for potential changes but not seeing the job losses they feared.
The national unemployment rate remained steady at 6.6% in February, reflecting a moderate increase from 5.0% in March 2023. While this rate is higher than what economists consider ideal—around 4.5%—Hirsch highlighted that it hasn’t spiked drastically. He expressed concerns about the rising trend of unemployment, noting that if it exceeded 7%, it would signal deeper issues in the economy.
Another key statistic from the survey was the decline in the labour force participation rate, which dropped to 65.3% in February—the first decrease since September 2024. Hirsch emphasized that a falling participation rate could signal waning confidence in the job market, as individuals may become discouraged and stop searching for work.
Hirsch also addressed a notable trend: three in 10 working Canadians are open to relocating for suitable work. This mobility could help balance labour market disparities across provinces, but Hirsch warned of the social costs of such movements, including the strain on established communities.
In conclusion, Hirsch believes that the ongoing tariff uncertainty poses a significant challenge to Canada’s labour market stability, with no clear end in sight.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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