As of February 7, 2025, Statistics Canada has released the January jobs report, indicating that Canadian employers added 25,000 jobs during the month. However, the unemployment rate has risen to 6.8%, up from 6.7% in December 2024. This increase in the unemployment rate, despite job growth, suggests a bearish trend in the Canadian labor market. The rise in unemployment may be attributed to factors such as a growing labor force or a slowdown in consumer demand, which has led to subdued business sentiment. Additionally, the threat of U.S. tariffs on Canadian exports has introduced further uncertainty into the economic outlook. While the tariffs have been postponed until March 4, 2025, their potential imposition could negatively impact the Canadian economy, potentially leading to a recession and an increase in unemployment to 7%. In summary, the combination of a rising unemployment rate and external trade threats contributes to a bearish outlook for Canada's labor market and overall economic health.