Ottawa – Arab Canada News

The Canadian economy witnessed its first decline in total jobs in March 2025 since more than two years, losing a net of 32,600 jobs, according to data released by Statistics Canada. This downturn was driven by a sharp decrease in full-time jobs, resulting in a national unemployment rate increase of 0.1 percentage points to 6.7%.

Analysts surveyed by Reuters had predicted the addition of 10,000 jobs during the month, with a slight rise in the unemployment rate. However, the actual results reflected unexpected negative impacts on the labor market.

Impact of US Tariffs

This decline is partly attributed to the uncertainty caused by the tariffs imposed by US President Donald Trump on Canadian steel, aluminum, and auto parts. These measures prompted companies to cut back on investments and hiring, adversely affecting the Canadian labor market.

Additional Details

Number of unemployed: The number of unemployed in March reached 1.5 million, an increase of 36,000 from the previous month.

Affected Sectors: Layoffs were concentrated in the construction (18.4%) and wholesale and retail trade (12.4%) sectors.

Wage Growth: The growth of the average hourly wage for permanent employees slowed to 3.5% in March, compared to 4% in February, which may ease inflation concerns.

Background:

Last month, the Bank of Canada indicated an increasing concern among Canadians regarding their job security and financial health due to ongoing trade tensions. Previous data had shown that the labor market was strong at the beginning of the year, with the addition of 76,000 jobs in January, before growth slowed in February.