According to a recent report published by Bloomberg, Canada’s labour market experienced a decline in employment, with the economy losing approximately 24,800 jobs in January 2026. This drop was mainly driven by significant job losses in the manufacturing sector, which has been negatively affected by ongoing trade tensions and tariffs imposed by the United States, reducing production demand and forcing companies to cut positions. Despite the decline in total employment, the national unemployment rate surprisingly fell to 6.5%, not because more people found jobs, but because fewer individuals were actively searching for work during the period. This reduction in job seekers offset the impact of job losses, resulting in a lower unemployment rate overall. The data, based on Statistics Canada’s labour force survey, highlights the complex nature of the current job market, where economic pressures are impacting key sectors such as manufacturing while overall labour force participation is also shifting. The report suggests that although some industries are facing challenges, the labour market remains relatively stable, and future trends will depend on economic growth, trade conditions, and employer hiring confidence across different sectors of the Canadian economy.