Canada created 76,000 net new jobs in January, led by manufacturing despite a looming threat of US tariffs, and more than three times what economists had expected, said according to Statistics Canada on Friday.
The growth marked a third monthly increase in employment, with January’s gains pushing the unemployment rate down 0.1 per cent to 6.6 per cent, according to Statistics Canada.
Canada’s manufacturing sector, which is particularly sensitive to changes in tariffs and foreign demand, has been bracing for possible 25 per cent US tariffs.
Manufacturing accounts for 8.9 per cent of jobs in the country, and an estimated 641,000 jobs in the sector are dependent on US demand for Canadian exports.
Canada got a 30-day reprieve on the tariffs this week after Prime Minister Justin Trudeau held last-minute talks with US President Donald Trump. But it remains unclear what happens next.
Analysts had projected only 25,000 new jobs would be created in January following gains of 91,000 in December and 44,000 in Nov. 5, and the unemployment rate to remain unchanged after trending down from a recent peak of 6.9 per cent in November.
Over this three-month period, the gains were in both full-time and part-time work.
“Amidst all the uncertainty about tariffs, the Canadian economy posted another heady month of job creation,” commented Desjardins analyst Royce Mendes in a research note.
However, “tougher tests are to come as trade uncertainty has risen since this survey was conducted,” added CIBC Economics analyst Andrew Grantham.
According to Statistics Canada, 33,000 manufacturing jobs were added in the month.
Gains were also recorded in professional, scientific and technical services, construction, accommodation and food services, transportation and warehousing, and agriculture.
Fewer people, however, were employed in “other services” including personal and repair services in the month.Attach
