Canada’s job market took a downturn in March, with the economy losing 33,000 jobs — marking the largest monthly decline since January 2022, according to Statistics Canada.
The national unemployment rate rose slightly to 6.7%, up from 6.6% in February. The agency linked the decline to growing economic uncertainty stemming from U.S.-imposed tariffs, which have cast a shadow over Canada’s short-term economic outlook.
The job losses in March erased some of the employment gains recorded late last year and in early 2025. The drop was largely driven by a steep loss of 62,000 full-time positions, although a rise in part-time work helped soften the blow slightly.
The wholesale and retail trade sector saw the sharpest decline, losing 29,000 jobs, reversing a strong gain of 51,000 jobs in February. The information, culture, and recreation sector was also hit hard, losing 20,000 jobs, while agriculture reported a drop of 9,300 jobs.
In contrast, some industries showed modest growth. The “other services” sector, which includes personal services like repair and maintenance, added 12,000 jobs. The utilities sector also gained 4,200 jobs during the same period.
Despite the decline in employment, total hours worked increased by 0.4% in March, bouncing back from a 1.3% drop in February. Additionally, average hourly wages rose by 3.6% year-over-year, suggesting that wage growth remains steady even as job numbers fall.
The latest figures underscore the challenges facing Canada’s labour market as global economic pressures — especially those tied to U.S. trade policies — continue to weigh on domestic industries and job creation.
