Canada’s economic landscape saw an addition of 14,000 jobs in March, according to Statistics Canada’s latest report released on Friday. This increase comes after a substantial decline in job numbers during the first two months of the year. The previous Labour Force Survey in February revealed a loss of 84,000 jobs, catching many economists and analysts off guard.
Chief economist at Bank of Montreal, Douglas Porter, commented on the situation, acknowledging that the recent job gain does not signal robust economic strength given the prior losses. However, he emphasized that even this minor uptick is a positive development, especially coupled with the stable unemployment rate that remained at 6.7 percent in March, with minimal shifts in the distribution of full-time and part-time positions.
The report highlighted growth in employment within the natural resources and “other services” sectors, encompassing industries like personal and repair services. Conversely, job numbers decreased in finance, insurance, real estate, and rental and leasing sectors. The figures also indicated little change in the number of private and public sector employees, although public sector employment exhibited a greater annual growth rate.
Average hourly wages showed a notable increase of 4.7 percent, equivalent to $1.68, resulting in an average hourly wage of $37.73. Statistics Canada pointed out that this wage growth rate is the highest recorded since October 2024. Porter noted that the spike in wages is a significant development that the Bank of Canada will monitor closely, especially given the heightened vigilance for any inflationary impacts stemming from rising energy prices.
Looking ahead, the Bank of Canada is set to announce its next interest rate decision on April 29, with a keen eye on economic indicators and potential inflationary pressures.
