- Canada lost 83,900 jobs in February, pushing the unemployment rate to 6.7% as full-time employment dropped.
- Job losses spread across sectors, with services down 56,000 and goods industries down 28,000, while youth unemployment rose to 14.1%.
- Bitcoin held near the $72,000 level despite weak labor data, as traders assessed the possibility of slower rate hikes.
Canada’s labour market recorded a sharp contraction in February as employment declined by 83,900 positions, according to data from Statistics Canada. The unemployment rate increased to 6.7%, reflecting weaker hiring conditions across several sectors. Bitcoin traders are therefore monitoring employment indicators. Data from major economies such as Canada and the United States can shape liquidity expectations.
Canada loses 83,900 jobs as unemployment climbs to 6.7%
Economists had expected a modest gain of about 10,000 jobs after January’s decline. Instead, the data showed one of the steepest non-pandemic job losses in recent years, raising concerns about economic momentum.
The drop largely resulted from a sharp decline in full-time positions. Statistics Canada reported that 108,000 full-time jobs disappeared during the month, while part-time employment remained mostly unchanged. Private sector employment also weakened. Companies reduced payrolls by 73,000 positions, which added pressure to the broader labour market.
Related: Canada’s Approach to Stablecoins Explained: Safety First, Innovation Second
Job losses spread across industries and regions
Service-producing sectors lost about 56,000 jobs during February. Meanwhile, goods-producing industries shed another 28,000 positions. Wholesale and retail trade reported the largest decline among service sectors. The industry lost roughly 18,000 jobs and continued a downward trend that began late last year.
Manufacturing and construction sectors also reduced payrolls and reported a combined loss of more than 21,000 jobs during the month. Regional data showed that Quebec recorded the steepest employment drop. The province lost about 57,000 jobs, which pushed its unemployment rate to 5.9%. British Columbia also reported a decline of roughly 20,000 positions. Meanwhile, Manitoba’s unemployment rate fell slightly because some workers exited the labour force rather than gaining employment.
Youth employment also weakened during February. About 47,000 jobs disappeared among workers aged 15 to 24, which pushed the youth unemployment rate to 14.1%. Average hourly wages increased 3.9% compared with the previous year. Economists noted that the rise partly reflected the loss of lower-paid jobs rather than broad wage growth.
Related: Why Bitcoin Stays Volatile After the Latest US Jobs Report
Bitcoin and crypto markets track macroeconomic signals
Macroeconomic data often influences digital asset markets because investors monitor interest rate expectations. Weak labour data can alter forecasts for central bank policy. Earlier in March, disappointing employment figures in the United States triggered volatility in Bitcoin trading. The asset briefly dropped to $70,000 in February as markets reassessed economic risks.
A softer labour market may encourage expectations of future rate cuts. However, immediate reactions sometimes move in the opposite direction. Investors may reduce exposure to risk assets if recession concerns increase.
The February labour report arrives during a period of broader economic uncertainty. As a result, digital asset markets continue to react to macroeconomic signals alongside developments within the crypto industry.
Related: Crypto Market Rebounds as Bitcoin Surpasses $72K—Will This Rally Continue?
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