Slowing population growth keeps unemployment steady
To help explain the stagnation, Statistics Canada noted that Canada’s employment rate had previously fallen 1.7 per cent from April 2023 to October 2024, as the country’s population growth outpaced employment growth.
That situation started changing during the second half of last year, the agency explained. In February 2025 Canada’s population rose by less than half its growth rate 12 months prior (47,000 versus 97,000, or 0.1 per cent versus 0.3 per cent) – the slowest since April 2022.
In fact, Statistics Canada’s most recent population estimates found that Canada’s population grew by its slowest rate in the third quarter of 2024 since the first quarter of 2022. This, plus the steady number of self-employed Canadians alongside those employed in the public and private sectors, contributed to the lack of monthly changes in the unemployment rate.
Wholesale and retail, finance sectors post biggest gains in February 2025
Most of the employment growth reported in February 2025 was driven by the wholesale and retail trade sector, which added 51,000 positions to the Canadian economy (1.7 per cent monthly growth). Finance, insurance, real estate, rental and leasing came in second with 16,000 new positions (a monthly gain of 1.1 per cent).
Other industries that reported significant job gains in February 2025, according to Statistics Canada, include:
Public administration: 4,400 jobs added (0.4 per cent gain)
Accommodation and food services: 4,200 jobs added (0.4 per cent gain)
Business, building and other support services: 3,500 jobs added (0.5 per cent gain)
Information, culture and recreation: 3,200 jobs added (0.4 per cent gain)
Educational services: 2,300 jobs added (0.1 per cent gain)
Health care and social assistance: 2,200 jobs added (0 per cent gain)
Meanwhile, employment fell in professional, scientific and technical services by 33,000 (a 1.6 per cent monthly loss), with Statistics Canada noting the industry has slowed down in recent months after posting strong gains between July 2023 and November 2024.
The agency also noted that employment fell in transportation and warehousing by 23,000 (a 2.1 per cent monthly loss), following gains of 17,000 in December and 13,000 in January. On a year-over-year basis, the transportation and warehousing industry’s employment rate has fallen by 29,000 (2.6 per cent).
Other industries that contracted last month included:
Services other than professional, scientific and technical; business, building and other support; educational (above) accommodation and food (above); and public administration (above): 9,700 jobs lost (1.3 per cent loss)
Utilities: 7,800 jobs lost (5.3 per cent loss)
Construction: 5,000 jobs lost (0.3 per cent loss)
Manufacturing: 4,800 jobs lost (0.3 per cent loss)
Agriculture: 1,200 jobs lost (0.1 per cent loss)
Natural resources: 700 jobs lost (0 per cent loss)
