Behind the Numbers: Labour Force Overview – February 2026

Behind the Numbers is a monthly series from the Durham Workforce Authority that breaks down the latest labour market data and what it means for Durham Region. This blog is informed by the February 2026 Labour Force Survey Report, which can be found here.

In February 2026, Durham Region’s labour market showed stable overall conditions with slight softening, including a decline in employment and participation alongside a modest increase in unemployment.

Key Highlights

  • Labour Force: 274,300, down 1,300 month-over-month
  • Employment: 254,100, down 1,700
  • Unemployment: 20,300, up 500
  • Unemployment Rate: 7.4%, increased by 0.2%
  • Participation Rate: 67.3%, dropped 0.5%

What’s Happening in the Labour Market

February’s data reflects a modest cooling in labour market activity, with fewer individuals employed and more actively seeking work. While these changes are relatively small, they represent a shift from the stronger labour market conditions observed in late 2025. The simultaneous decline in employment and rise in unemployment suggests that hiring activity has slowed in the short term. However, these movements remain within the range of normal month-to-month variation and should be interpreted within the context of broader trends.

Importantly, employment levels remain higher than they were one year ago, indicating that the labour market continues to operate from a position of relative strength. This suggests that Durham’s labour market is stabilizing after a period of growth, rather than entering a period of decline.

Participation, Employment, and Unemployment Trends

The relationship between participation, employment, and unemployment provides important insight into overall labour market dynamics. In February:

  • Employment decreased
  • Unemployment increased
  • Participation declined

At the same time, the number of individuals not participating in the labour force increased, indicating that more residents are neither working nor actively seeking work. This combination points to a shift in workforce engagement. Some individuals may be exiting the labour force due to factors such as education, caregiving responsibilities, or challenges in finding suitable employment, while others remain active in their job search without securing employment. These dynamics highlight the importance of looking beyond a single indicator. For example, rising unemployment can reflect both increased job search activity and challenges in matching workers to available roles.

Taken together, these trends indicate that labour supply is adjusting, with changes occurring in both participation and employment at the same time.

Looking Beyond the Month-to-Month Changes

While monthly fluctuations provide useful signals, longer-term trends offer a more comprehensive view of labour market conditions.

Over the past year:

  • Employment increased by 7,400
  • Unemployment increased by 900
  • Not participating increased by 3,100

Over a two-year period, employment has grown significantly, reflecting a larger and more active labour market overall. Trend data (pages 3–5) shows that employment and participation rates peaked in late 2025 before easing into early 2026. This pattern suggests that recent changes may represent a normalization following a period of stronger labour market performance. Population growth continues to play a key role in shaping these trends, increasing both labour supply and the number of individuals entering or re-entering the workforce.

This reinforces an important point: short-term increases in unemployment can occur even in a growing labour market, particularly when labour supply is expanding.

What This Means for Employers and Jobseekers

For employers:
A growing labour force provides access to a broader pool of potential workers. However, declining participation may signal challenges in workforce engagement, particularly among individuals who are not actively seeking employment. Employers may need to consider strategies to attract underrepresented groups, improve job quality, or provide more flexible work arrangements to strengthen participation.

For jobseekers:
While opportunities remain available, the increase in unemployment suggests that competition for jobs may be intensifying, particularly in sectors experiencing slower growth. Jobseekers may benefit from focusing on in-demand skills or exploring opportunities in sectors that continue to expand.

The current labour market reflects a balance between opportunity and competition, shaped by both demand for workers and the number of individuals seeking employment.

Looking Ahead

Labour force participation will be a key indicator to monitor in the coming months, as it reflects how actively residents are engaging with the labour market. Changes in participation can have a significant impact on both employment and unemployment trends, making it an important signal for understanding the direction of the labour market. Sustained shifts in participation will help determine whether recent changes represent a temporary adjustment or a longer-term change in workforce engagement.

The Durham Workforce Authority will continue to track and share these insights to support informed decision-making across the region.