Canada Sees Shift To Part-Time Work As Full-Time Employment Declines In February

Canada’s labor market remained largely stagnant in February, with employment increasing by just 1,100 positions, leaving the unemployment rate unchanged at 6.6%. However, a notable shift occurred within the job market, as part-time work rose while full-time employment declined.

Statistics Canada reported a net loss of 19,700 full-time jobs in February, offset by a gain of 20,800 part-time positions. This trend reflects a growing reliance on part-time roles amid economic uncertainty and sectoral shifts. The employment rate held steady at 61.1%, following three months of gains that had added 211,000 jobs between November and January.

Employment gains were concentrated in wholesale and retail trade (+51,000; +1.7%) and finance, insurance, real estate, rental, and leasing (+16,000; +1.1%). Meanwhile, professional, scientific, and technical services (-33,000; -1.6%) and transportation and warehousing (-23,000; -2.1%) saw significant declines. Manufacturing also contracted slightly after leading job growth in January.

Regionally, Nova Scotia was the only province to see a decline in employment (-4,300; -0.8%), driven entirely by part-time job losses. Employment in other provinces remained stable.

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The shift toward part-time work comes as Canada braces for potential economic headwinds, including recently implemented U.S. tariffs that may dampen corporate hiring plans. Additionally, severe winter storms disrupted work hours for over 429,000 employees in February, contributing to a 1.3% monthly drop in total hours worked—the largest decline since April 2022.

Wage growth offered a modest silver lining: average hourly wages rose by 3.8% year-over-year to $36.14 in February, up from January’s growth rate of 3.5%. However, this increase may not fully offset inflationary pressures or the challenges posed by reduced full-time jobs.

Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.