The Canadian labor market shows signs of recovery, adding 76,000 new jobs, especially in manufacturing, professional services, science, and technology.

On February 7, 2025, Statistics Canada reported that the Canadian economy added 76,000 new jobs in January, significantly exceeding analysts' expectations of 25,000 jobs. As a result, the unemployment rate dropped from 6.7% in December to 6.6% in January.

The job gains were evenly distributed between full-time and part-time positions, with notable growth in the manufacturing sector, professional services, science, and technology.

Some economists believe that this strong employment data may reduce the likelihood of the Bank of Canada cutting interest rates in its March meeting

However, despite the significant job gains, the number of unemployed individuals remains high at 1.5 million.

Additionally, the average hourly wage for full-time employees increased by 3.7% in January, slightly down from 3.8% in December.

These figures indicate improvements in Canada's labor market, though economic challenges and trade uncertainties remain to be monitored.