Canada’s economy saw a slight increase of 14,000 jobs in March, according to Statistics Canada’s latest report, offsetting a portion of the significant job losses experienced in the first months of the year. The February Labour Force Survey had revealed a surprising 84,000 job reduction, catching many economists and analysts off guard.
Despite the modest rebound in job numbers, Douglas Porter, the chief economist at Bank of Montreal, cautioned that this uptick should not be mistaken for a robust recovery. He emphasized the positive aspect of the stable jobless rate, which remained at 6.7 percent, with minimal changes in the distribution of full- and part-time employment in March.
Job growth was observed in the natural resources sector and the “other services” industry, encompassing areas such as personal and repair services. However, employment declined in finance, insurance, real estate, rental, and leasing sectors. The report indicated little fluctuation in the number of private and public sector employees, although public sector employment exhibited a faster annual growth rate.
Average hourly wages saw a notable increase of 4.7 percent, equivalent to $1.68, bringing the total average hourly wage to $37.73. This wage growth, the highest since October 2024, caught the attention of economists, especially the Bank of Canada, amid concerns of potential inflationary pressures stemming from elevated energy prices.
Looking ahead, the Bank of Canada’s upcoming interest rate announcement is scheduled for April 29, where the latest economic indicators, including wage trends, will likely be under scrutiny.
