FX.co ★ Canadian Labour Market Contracts in January as Employment Falls by 24.8K

Canada’s labour market showed a sharp setback at the start of 2026, with total employment declining by 24.8K in January, according to data updated on 6 February 2026. The drop marks a clear reversal from December 2025, when employment had posted a modest gain of 10.1K.

The negative print for January suggests a cooling in hiring momentum after year-end, as the economy shifted from a slightly expansionary footing in December to outright job losses in the new year. While the data provided do not break down the sectors or regions behind the decline, the move from a positive to a notably negative employment change will likely sharpen market focus on the strength of Canada’s labour market and its resilience to broader economic headwinds.

Investors and analysts will be watching upcoming labour releases closely to determine whether January’s decline represents a temporary adjustment following previous gains, or the start of a more sustained softening in employment conditions across Canada.