Canada unexpectedly lost 24,800 jobs in January but the unemployment rate dipped to a 16-month low of 6.5 per cent as fewer people looked for work, Statistics Canada indicated on Friday.

Analysts had forecast a gain of 7,000 jobs and for the unemployment rate to remain unchanged at 6.8 per cent.

Full-time employment in January rose by 44,900 jobs while part time employment fell by 69,700 positions.

The unemployment rate – the lowest since the 6.5 per cent recorded in September, 2024 – fell across most major demographic groups, largely reflecting declines in the number of job searchers.