Canada’s economy saw a slight increase of 14,000 jobs in March, rebounding from significant job losses in the previous two months, according to Statistics Canada. The February Labour Force Survey had reported an unexpected decline of 84,000 jobs, catching many economists and analysts off guard.
Despite the recent setbacks, Douglas Porter, the chief economist at Bank of Montreal, emphasized that the marginal job growth should not be mistaken for robustness. However, he acknowledged the positivity of the stable unemployment rate of 6.7%. Both full-time and part-time employment figures remained relatively steady during March.
Noteworthy job gains were observed in the natural resources sector and the “other services” industry, encompassing areas like personal and repair services. Conversely, employment decreased in finance, insurance, real estate, and leasing sectors. The number of private and public sector employees remained largely unchanged, although public sector employment exhibited stronger year-over-year growth.
Average hourly wages experienced a notable increase of 4.7%, amounting to $37.73 per hour, marking the highest wage growth rate since October 2024, as highlighted by Statistics Canada. This wage hike will be closely monitored by the Bank of Canada, especially amid concerns about potential inflation spurred by rising energy prices.
The Bank of Canada is scheduled to announce its next interest rate decision on April 29.