Ottawa is feeling the weight of Canada's worst monthly job loss in years, as Statistics Canada reports 84,000 positions vanished in February and the unemployment rate climbed to 6.7 per cent -- the highest reading since late 2024.
The February labour force survey landed like a gut punch for the Carney government, which has been touting its economic credentials amid ongoing trade friction with the United States. Outside of pandemic lockdowns, this is one of the single worst monthly job tallies Canada has recorded.
What's Behind the Numbers
Economists point to several converging pressures: ongoing uncertainty from U.S. tariff threats, elevated interest rates weighing on interest-rate-sensitive sectors, and a general slowdown in consumer spending. Full-time employment bore the brunt of the losses, with part-time work holding relatively stable.
Sectors hit hardest included manufacturing, construction, and professional services -- all of which have significant footprints in the Ottawa-Gatineau metro area.
Ottawa's Local Picture
For Ottawa residents, the numbers land with added sting. The National Capital Region's economy leans heavily on the federal public service, which has been managing its own headcount pressures through hiring freezes and attrition. The private sector, particularly in tech and professional services, has also been shedding positions as contracts dry up and companies tighten budgets.
Local employment agencies report a notable uptick in job seekers in the Centretown and Kanata corridors over the past few months -- a trend that predates February's national numbers but aligns with them.
Carney's Response
Prime Minister Mark Carney moved quickly to put the data in context, telling reporters that Canada's job creation over the past six months still outpaces the United States on a per-capita basis. "We are weathering a genuinely difficult global moment," Carney said, "but our fundamentals remain stronger than our neighbours'."
Opposition leader Pierre Poilievre wasn't buying it, calling the numbers "a catastrophic indictment of Liberal mismanagement" and demanding an emergency debate in the House of Commons.
What to Watch
All eyes now turn to the Bank of Canada's next rate decision and whether March numbers show any recovery. Many economists expect a mild rebound as seasonal construction work picks up, but warn that sustained trade uncertainty could keep the labour market soft well into the spring.
For Ottawa workers keeping a close eye on their own job security, the message is familiar but uncomfortable: buckle up, because the economic turbulence isn't over yet.
