Canada Boosts Employment with 14,000 New Jobs in March; Unemployment Steady at 6.7%
Statistics Canada has reported a modest increase in employment, with 14,000 new jobs added in March. This marks a rebound following two months of job losses earlier this year. The unemployment rate remained steady at 6.7%, indicating stability in the labor market.
Key Employment Developments for March
The job growth in March aligns closely with economists’ forecasts. Marc Desormeaux, a vice-president of policy and economist at the Business Council of Canada, noted that while job losses have ceased, the overall labor market performance remains subdued. The increase in employment was predominantly driven by the “other services” category, which encompasses repair and maintenance work.
- Job gains in the “other services” sector totaled 15,000.
- Some sectors, including professional, scientific, technical services, and natural resources, also saw job increases.
- However, the finance, insurance, real estate, and leasing sector reported a loss of 11,000 jobs, marking its first significant decline since November 2023.
The manufacturing sector continues to face challenges, having lost 44,000 positions compared to March of the previous year, due to tariffs imposed on Canadian goods by the U.S. Desormeaux emphasized that job losses have affected service industries as well.
Provincial Employment Trends
British Columbia experienced a job decline of 19,000 in March, following a similar drop in February. This has resulted in the province’s unemployment rate reaching 6.7%, the highest rate outside of the COVID-19 pandemic period in almost a decade.
Wage Growth Insights
Average hourly wages across Canada rose 4.7% year-over-year. This marks an increase from 3.9% in February, representing the fastest growth since October 2024. However, when adjusted for employment composition, the average annual wage growth is stabilized at 3.6%, reflecting consistent figures from previous months.
Future Outlook
The recent job gains in March highlight ongoing fluctuations within the labor market. Although the final months of 2025 saw substantial job growth, over 100,000 jobs were lost during the first two months of 2026. Year-over-year data indicates total employment has increased by 87,000 positions as of March.
According to TD Bank senior economist Andrew Hencic, the economic outlook is tempered by high levels of uncertainty, particularly due to global factors such as the conflict in Iran affecting energy prices. Financial market forecasts suggest a nearly 95% probability of the Bank of Canada maintaining interest rates in their upcoming decision on April 29.
These insights provide a comprehensive snapshot of Canada’s employment landscape as we move further into 2026. As the economy continues to adapt, analysts remain cautious about the pace of job growth and overall economic stability.
