Canada’s labour market lost 33,000 jobs in March, the largest monthly decline since 2022, new data from Statistics Canada showed on Friday.
Analysts had expected the net addition of 10,000 growth.
The unemployment rate increased by 0.1% to 6.7%, in line with analyst forecasts.
There were 1.5 million unemployed people in March, up by 36,000 or 2.5% month-over-month and by 167,000 or 12.4% year-over-year.
Employment declined in wholesale and retail trade and information, culture and recreation. Meanwhile, employment increased in “other services’ such as personal and repair services and utilities.
Employment fell by 0.3% in Ontario and 0.6% in Alberta while increasing by 1.1% in Saskatchewan. It was little changed in other provinces.
Average hourly wages were up 3.6% on a year-over-year basis, down from 3.8% in February.
Amid the fallout from US president Donald Trump’s latest tariff announcement which has sent markets into turmoil, the report highlighted the increased risk of layoffs during economic downturns, citing increased layoffs following the 2008/2009 recession.
“Over the coming months, Statistics Canada will continue to monitor and report on a range of labour market indicators to shed light on how Canada's labour market is evolving in the context of uncertain economic conditions,” the agency wrote.