Canada’s economy saw a slight increase of 14,000 jobs in March, according to Statistics Canada’s latest report. This growth followed significant job losses in the preceding months. The unexpected loss of 84,000 jobs in February surprised economists and analysts.
Douglas Porter, the chief economist at Bank of Montreal, noted that while the recent job gains may not indicate robust strength, any positive change is welcomed, especially with the unemployment rate holding steady at 6.7 percent. The distribution of full- and part-time employment remained relatively unchanged in March.
Notable job growth was observed in the natural resources and “other services” sectors, encompassing areas like personal services and repair services. Conversely, the finance, insurance, real estate, rental, and leasing sectors experienced declines in employment.
While the number of private and public sector workers remained stable, the public sector workforce exhibited a higher annual growth rate. Average hourly wages increased by 4.7 percent, equivalent to $1.68, resulting in a total average hourly wage of $37.73. Statistics Canada highlighted that this wage growth rate is the highest recorded since October 2024.
Porter emphasized the significance of the wage increase, indicating the Bank of Canada’s monitoring of potential inflationary impacts, particularly in response to escalating energy prices. The Bank of Canada’s upcoming interest rate announcement is scheduled for April 29.