Canada’s economy saw a modest increase of 14,000 jobs in March, according to Statistics Canada. This growth partially offset the significant job losses experienced in the first two months of the year. The previous Labour Force Survey in February revealed a loss of 84,000 jobs, surprising many economists and analysts.
Chief economist Douglas Porter from Bank of Montreal commented that despite the earlier setbacks, the latest job increase should not be viewed as a strong signal. However, any positive growth is welcomed, along with the stable unemployment rate of 6.7 percent. The distribution of full-time and part-time jobs remained relatively consistent in March.
The natural resources and “other services” industries experienced job growth, while the finance, insurance, real estate, rental, and leasing sectors reported declines. Both private and public sector employment figures remained steady, with the public sector showing a higher annual growth rate.
Average hourly wages rose by 4.7 percent, amounting to $1.68, bringing the total average hourly wage to $37.73. This wage growth is the most significant since October 2024, as highlighted by Statistics Canada. Porter noted that the noteworthy increase in wages will be closely monitored by the Bank of Canada, especially amidst concerns about potential inflation from rising energy prices.
The Bank of Canada is scheduled to make its next interest rate announcement on April 29.
