Canada’s Unemployment Rate Climbs to 6.1 Percent in March
The unemployment rate in Canada rose to 6.1 percent in March, up from 5.8 percent in February, according to the statistics agency. This increase was driven by declines in employment in the hospitality and food sectors, wholesale and retail trade, and professional, scientific, and technical services.
On the other hand, jobs were added in health care and social assistance, and the average hourly wage saw a 5.1 percent increase compared to the same period in 2023. However, the employment rate, which represents the segment of the population aged 15 and over who are employed, fell for the sixth consecutive month and now stands at 61.4 percent due to a population boom.
Economist Royce Mendes from Desjardins Bank noted that the Canadian labor market is beginning to show more cracks, with the economy shedding 2,000 jobs in March. Mendes expects the Bank of Canada to announce a plan to lower interest rates in the middle of the year.
The data suggests challenges ahead for Canada’s economy as it navigates through the impact of the changing employment landscape.
