Unemployment rate holds steady despite US tariff threats

Canada’s unemployment rate held at 6.6% in February, unchanged from January, as employers added 1,100 jobs despite ongoing trade uncertainty sparked by President Donald Trump’s tariffs.  

Gains in retail, wholesale, and finance sectors offset losses in transportation and warehousing. 

The figures come amid heightened strain on Canada-US trade relations following Trump’s inauguration, with a 30-day tariff pause expiring on Tuesday.  

Economists have labeled the situation the “most significant trade shock” since the 1930s. 

Though Trump temporarily exempted some Canadian and Mexican products under the Canada-United States-Mexico Agreement (CUSMA) on Thursday, tariffs on other goods started this week.  

A Royal Bank of Canada (RBC) report pointed out that tariff uncertainty alone could slow hiring, citing a dip in February job postings on Indeed.com after gains in late 2023. 

“Actual tariff hikes drive layoffs, but uncertainty may delay hiring,” said the RBC report.

While the labour market showed resilience, experts warn prolonged disputes could stifle growth. 

February’s steady job numbers suggest cautious optimism, but businesses remain on edge as cross-border trade rules are in limbo.