Statistics Canada announced on Friday that the country’s economy added 14,000 jobs in March. This increase comes after substantial job losses in the first two months of the year. In February alone, 84,000 jobs were lost, which surprised many economists.
Job Market Overview
Despite the modest rebound, experts caution against viewing this growth as a sign of economic strength. Douglas Porter, chief economist at the Bank of Montreal, highlighted this in a client note. “No one is going to mistake this small back-up as a sign of strength,” he stated. However, he noted that even a slight increase is still a positive development, particularly as the unemployment rate remains stable.
Unemployment Rate and Employment Sectors
- The unemployment rate held steady at 6.7 percent.
- Employment grew in the natural resources sector.
- Gains were also seen in the “other services” sector, which includes personal and repair services.
- Job losses occurred in finance, insurance, real estate, rental and leasing sectors.
The number of public sector jobs has been increasing at a faster annual rate, while there was little change in both private and public sector employment this month.
Wage Growth and Future Projections
Average hourly wages increased by 4.7 percent, or $1.68, bringing the total to $37.73. This marks the highest growth rate in wages since October 2024. “The only really new news here is that wages seemingly popped,” said Porter. This wage increase will be closely monitored by the Bank of Canada, especially amidst concerns about inflation being influenced by rising energy prices.
Upcoming Bank of Canada Announcement
The Bank of Canada is scheduled to make its next interest rate announcement on April 29, which could further influence the economic landscape as the nation navigates this recovery period.
