Canada’s economy saw a modest increase of 14,000 jobs in March, according to Statistics Canada. This gain partially offsets the significant job losses experienced in the first two months of the year. In February, the Labour Force Survey reported a loss of 84,000 jobs, surprising many economists and analysts.
Chief economist Douglas Porter of Bank of Montreal commented that while the recent job growth may not indicate strength, it is still a positive development considering the previous losses. The unemployment rate remained steady at 6.7 percent in March, with minimal changes in the number of full-time and part-time workers.
Job gains were observed in the natural resources and “other services” industries, while there was a decline in employment in finance, insurance, real estate, rental, and leasing sectors. The overall number of private and public sector employees remained relatively stable, although public sector employment has been increasing at a faster rate annually.
Average hourly wages rose by 4.7 percent, equating to a $1.68 increase and a total average hourly wage of $37.73. This wage growth is the highest reported since October 2024, prompting the Bank of Canada to monitor the situation closely for potential inflationary impacts.
Looking ahead, the Bank of Canada’s next interest rate announcement is scheduled for April 29.