The Canadian economy added 35,000 jobs in March amid strong population growth, keeping the unemployment rate steady near its record lows.

In the latest labor force survey, Statistics Canada reported today, Thursday, that the unemployment rate was 5 percent for the fourth consecutive month.

Job gains were primarily achieved in the private sector. Employment rose in transportation and storage, business, construction and other support services, as well as finance, real estate, leasing, and rental.

For his part, Brendon Bernard, chief economist at Indeed, said the report shows the labor market is still functioning well, "despite a lot of economic uncertainty."

But Bernard warned that interpreting job numbers is somewhat difficult because Canada is also experiencing rapid population growth.

Statistics Canada also said that the population grew by 0.3 percent last month, while employment increased by 0.2 percent.

Bernard added: "The report may not be as strong as the headline number might suggest." "But at the same time, the 5 percent unemployment rate highlights the big picture story, which is that the labor market remains solid."

With employers continuing to want to hire, wages continued to grow in March. The average hourly wage rose by 5.3 percent year-over-year.

The Canadian labor market has been tight for months, despite rising interest rates raising borrowing costs for individuals and businesses.

March was also the fourth consecutive month the unemployment rate remained at 5 percent, hovering near its record lows.

The Statistics Canada report showed that unemployed persons were less likely to remain out of work for a long time. The share of unemployed in March who remained unemployed for 27 weeks or more was 16 percent, down from 20.3 percent in the previous year.

However, the tight labor market is not expected to last forever. Large interest rate hikes by the Bank of Canada since March 2022 are expected to impact the economy, with economists forecasting a significant slowdown this year.

Recent polls released by the central bank earlier this week also showed that consumers and businesses are preparing for this slowdown. Consumers said they plan to cut back on spending, while businesses expect sales to slow.

This downturn is expected to extend to the labor market and lead to a rise in the unemployment rate.

While companies continued to report labor shortages as a major concern, surveys showed evidence that the labor market is beginning to ease.