Canada's unemployment rate drops to 6.5% despite a slight employment decline in January 2026

In January, Canada's labour market presented a layered picture: employment decreased by 25,000 positions, yet the unemployment rate fell to 6.5% - the lowest level observed since September 2024. The decline in joblessness stemmed primarily from fewer Canadians actively seeking work rather than job creation. Core-aged women experienced the most significant employment loss, shedding 27,000 positions. Manufacturing and educational services bore the brunt of sector-specific cuts, while agriculture and information sectors posted modest gains. Ontario saw the steepest provincial employment decline, with 67,000 jobs lost, while Alberta and Saskatchewan posted gains. Wage growth remained steady at 3.3% year-over-year, reaching $37.17 hourly.

Express Entry competition eases as high-scoring profiles drop 30%

Canada's Express Entry pool is showing signs of reduced competition at the top tier for the second consecutive month. Between January 4 and February 2, over 6,200 profiles with CRS scores above 501 exited the system, marking a significant 29% decrease in the 501-600 range alone. While the overall pool expanded by 2,366 candidates, the reduction in high-scoring applicants suggests improving prospects for mid-range candidates seeking permanent residence invitations. Immigration experts note this trend could benefit those with lower CRS scores, as fewer top-tier candidates now occupy the higher rankings during invitation rounds.

Canada faces a critical challenge in attracting and retaining global talent amid policy reforms

Two years after implementing international student enrollment caps, Canada is grappling with unintended consequences that threaten its economic competitiveness. While the reforms successfully eased rental market pressures and addressed public concerns about immigration levels, they have triggered sharp declines in critical fields. Graduate programs in electrical and computer engineering saw enrollments plunge by 21.4 percent between September 2023 and 2024, with similar drops across STEM disciplines. The situation is compounded by alarming retention figures: highly educated immigrants are leaving Canada at twice the rate of other newcomers, particularly in high-demand sectors like information technology, engineering, and finance. With Canada's fertility rate at a historic low of 1.26 and a skills shortage costing an estimated $2.6 billion annually, the country's ability to maintain workforce levels and economic growth hangs in the balance.

Alberta leads Canada in job growth with 41,800 new full-time positions

Alberta added 41,800 full-time jobs last month, cementing its position as Canada's leader in employment growth despite global economic headwinds affecting other provinces. Minister of Jobs, Economy, Trade and Immigration Joseph Schow highlighted the province's 3.4 per cent increase in employment over the past year, significantly outpacing the national average of 0.6 per cent. The province's economic diversification efforts, combined with competitive tax rates and a skilled workforce, continue to attract business investment. With productivity rates and average weekly earnings among the highest in Canada, Alberta reinforces its reputation as an ideal location for families and businesses alike.

North Bay & Area RCIP unveils expanded 2026 priority occupation list with new sector

The North Bay & Area Rural Community Immigration Pilot has announced significant updates to its 2026 Priority Occupation List, including the addition of a sixth priority sector focused on natural and applied sciences. Following consultation with over 170 designated employers and analysis of regional labour market data, the program has refined its occupations list to better address workforce needs across healthcare, construction, manufacturing, and newly added technology fields. The revised list features 25 priority occupations, with applications accepted through ten scheduled intake periods throughout the year beginning February 15. All unsuccessful 2025 applications have been removed to provide candidates with a fresh start under the updated criteria.

British Columbia held the first Skills Immigration draw under the BCPNP

On February 4, 2026, the Government of British Columbia held the first Skills Immigration invitation draws under the British Columbia Provincial Nominee Program (BCPNP) and issued invitations to apply to 429 skilled candidates with the potential to create high economic impact in the province. The selection criteria targeted two distinct groups: 206 candidates in NOC TEER 0, 1, 2, or 3 positions earning a minimum wage of $70 per hour while working full-time with their supporting BC employer, and another 223 candidates who achieved a minimum score of 138 points. This year, British Columbia has invited up to 436 candidates.

Nova Scotia’s Pictou County launches 2026 Rural Community Immigration Pilot to address labour shortages

Nova Scotia’s Pictou County has announced the launch of the Rural Community Immigration Pilot (RCIP), with employer designation applications opening on February 17, 2026. As one of only 14 selected communities in Canada, Pictou County will use this permanent residency pathway to fill critical roles in healthcare, trades, and technology across municipalities like New Glasgow and Stellarton. The program aims to align regional labour needs with international talent, offering a community hug of integration services to help newcomers settle and thrive. The first intake for candidate recommendations is scheduled to run from March 1–15, 2026.

BC conducted a new Skills Immigration draw under the BCPNP

On February 11, 2026, the Government of British Columbia held the second Skills Immigration invitation draw under the British Columbia Provincial Nominee Program (BCPNP) and issued invitations to apply to 460 skilled candidates with the potential to create high economic impact in the province. The selection criteria targeted two distinct groups: 195 candidates in NOC TEER 0, 1, 2, or 3 positions earning a minimum wage of $62 per hour while working full-time with their supporting BC employer, and another 265 candidates who achieved a minimum score of 135 points. This year, British Columbia has invited up to 914 candidates under the BCPNP.

New Brunswick introduced major changes to immigration streams

Starting February 3, 2026, Immigration New Brunswick has suspended new employer designation applications under the Atlantic Immigration Program while implementing sweeping reforms across three key immigration pathways. The province is introducing a candidate pool system for AIP endorsement applications, in which monthly selections prioritize provincial labour market needs rather than processing applications chronologically. Simultaneously, significant occupational restrictions now apply to both the New Brunswick Skilled Worker and Express Entry streams, particularly affecting the accommodation and food services sector. Applications in the pool remain valid for 365 days, after which unselected candidates must resubmit them in full. These measures reflect New Brunswick's strategic response to nationwide reductions in immigration and aim to better align newcomers' skills with the province's evolving economic priorities.

ESDC published updated processing times for LMIA streams

On February 10, 2026, Employment and Social Development Canada (ESDC) updated the processing times for the Labour Market Impact Assessment (LMIA) applications under various streams. Based on statistics from all processing centres, the average LMIA processing time has increased for all streams.
• Global Talent Stream - 11 business days (+1 day)
• Agricultural stream – 19 business days (+4 days)
• Seasonal Agricultural Worker Program - 16 business days (+6 days)
• Permanent Residence Stream - 277 business days (+3 days)
• High-wage Stream - 56 business days (+6 days)
• Low-wage Stream - 49 business days (+5 days)

Canadian universities turn to provinces as international student numbers drop

Canada's Immigration Minister Lena Diab has made it clear that universities facing financial strain from reduced international student enrollment must look to provincial governments for support. The minister noted that international student numbers fell from over one million in early 2024 to approximately 700,000 by November 2025. The Federal Government scaled back the program after concerns that post-pandemic immigration levels were overwhelming healthcare, housing, and other essential services. Universities nationwide are feeling the pinch, as international students typically pay significantly higher tuition than domestic students. Memorial University in Newfoundland recently announced plans to sell several properties, including its English campus, to offset a $25 million budget shortfall.

Canada's Immigration Minister pushes for a digital exit tracking system for temporary residents

Immigration Minister Lena Diab has called for enhanced tracking capabilities to monitor temporary residents leaving Canada, as nearly 1.9 million temporary residents are set to have their visas expire this year. While the Canada Border Services Agency currently tracks departure details like transportation methods and travel documents, it lacks the ability to efficiently determine visa expiration status without manual, labour-intensive checks. Diab emphasized that many countries already employ such tracking systems and believes Canada should follow suit, using digital tools. This initiative comes as asylum claims from temporary visa holders surged in 2024, with over 112,000 applications filed compared to just 6,600 in 2020, prompting the government to introduce border security measures to restore public confidence in the immigration system.