Quebec faced the most severe employment downturn of all provinces in the latest labor force survey released by Statistics Canada on Friday, March 13, 2026. The province recorded a sharp decline of 1.2% in employment, outpacing other regions and marking a significant shift in its economic landscape.
National Unemployment Trends and Provincial Comparisons
Across Canada, the unemployment rate increased by 0.2 percentage points in February, reaching 6.7%. This figure is slightly higher than the 6.6% reported in February 2025 but remains below the recent peak of 7.1% observed in August and September 2025. Among provinces, Quebec's 1.2% employment decrease was the most pronounced, followed by Saskatchewan at 0.9%, British Columbia at 0.7%, and Manitoba at 0.5%. In contrast, Newfoundland and Labrador saw an employment increase of 0.8%, while other provinces maintained stable levels.
Quebec's Labor Market in Focus
This decline represents the first substantial employment drop in Quebec since January 2022. Despite the setback, the province's unemployment rate stood at 5.9% in February, which is below the recent high of 6.2% recorded in June 2025. The report highlights that the hardest-hit sectors nationwide include wholesale and retail trade, as well as personal services and repair work, reflecting broader economic challenges.
Demographic and Sectoral Impacts
Employment losses were most acute among younger Canadians, with the 15 to 24-year-old age group experiencing the sharpest decline, followed by men aged 25 to 54. Unemployment rates for Black youth surged to 23.2%, up 4.6 percentage points from a year ago, while rates for Chinese youth were 17.4% and South Asian youth at 13.0%. In comparison, non-racialized and non-Indigenous youth had an unemployment rate of 11.2%.
Full-time employment across Canada decreased by 108,000 in February, reversing two months of growth. Among the approximately 1.5 million unemployed individuals, 22.8% were in long-term unemployment, defined as being jobless for 27 weeks or more. This rate is notably higher than the pre-pandemic average of 17.1% from 2017 to 2019.
Wage Growth and Gender Disparities
Amid the employment challenges, there was positive news regarding wages. Average hourly wages rose by 3.9% from February 2025, reaching $37.56. However, gender disparities persist, with women earning an average of $0.88 for every dollar earned by men. Women aged 25 to 54 had an average hourly wage of $37.62, which is 11.6% less than the $42.55 average for men in the same age group. Women are more likely to work part-time, often due to childcare responsibilities.
Broader Economic Indicators
The participation rate, which measures the proportion of the population aged 15 and older who are employed or seeking work, fell by 0.1 percentage points to 64.9% in February. This represents a decline of 0.4 percentage points from the same period a year ago, indicating reduced labor force engagement. These statistics underscore the ongoing economic pressures faced by Canadians, particularly in regions like Quebec where employment declines are most severe.
As the data reveals, Quebec's labor market is navigating significant headwinds, with implications for provincial economic stability and national trends. The report serves as a critical benchmark for policymakers and stakeholders addressing employment and wage issues in the coming months.
