08:48 AM EST, 03/07/2025 (MT Newswires) -- Hiring stalled during February, in what could be the first sign that United States tariff uncertainty is impacting the Canadian economy, said CIBC after the release of Friday's Labour Force Suvey (LFS).

The 1,100 gain was below the 20,000 expected by the consensus, and the unemployment rate only held steady at 6.6% due to a drop in labor force participation, noted the bank.

The sector breakdown showed a strong gain in wholesale & retail employment, offset by declines in other areas, including some that are most exposed to tariff uncertainty, such as manufacturing and transportation & wholesaling, stated CIBC.

Hours worked fell 1.3% on the month, although that reflected large winter storms that hit central and eastern Canada during the reference period. Hourly earnings for permanent employees accelerated to 4.0% from 3.7%, but the decline in hours worked due to winter storms could have caused some volatility here.

Given the stall in hiring during February and ongoing uncertainty regarding tariffs that are likely to have larger negative impacts ahead, CIBC continues to expect a 25bps cut from the Bank of Canada next Wednesday.