Canada’s economy saw a modest increase of 14,000 jobs in March, according to Statistics Canada’s latest report. This growth follows significant job losses in the preceding two months. The unexpected loss of 84,000 jobs in February had caught many economists and analysts off guard.
Chief economist Douglas Porter from Bank of Montreal highlighted that while the recent job gains are a positive development, they are not indicative of a robust economic recovery. Despite the slight improvement, the unemployment rate remained steady at 6.7%. Both full-time and part-time employment figures showed minimal change in March.
Notable job growth was observed in the natural resources and “other services” sectors, encompassing areas such as personal and repair services. Conversely, job numbers declined in finance, insurance, real estate, rental, and leasing industries. The overall composition of private and public sector workers remained relatively stable, with a notable uptick in public sector employment over the past year.
Average hourly wages recorded a notable increase of 4.7%, amounting to $37.73 per hour, the highest wage growth rate since October 2024, as reported by Statistics Canada. Porter emphasized the significance of this wage growth, particularly in light of the Bank of Canada’s vigilance regarding potential inflation triggers from rising energy prices.
The Bank of Canada is scheduled to announce its next interest rate decision on April 29, closely monitoring economic indicators like wage growth for future policy considerations.
