Ottawa – Arab Canada News

The Canadian economy saw its first decline in total jobs in March 2025 since more than two years, with a net loss of 32,600 jobs, according to data released by Statistics Canada. This decline was driven by a sharp drop in full-time jobs, leading to a 0.1 percentage point increase in the national unemployment rate to 6.7%.

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

Impact of U.S. Tariffs

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

Additional Details

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

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

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 alleviate inflation concerns.

Background:

Last month, the Bank of Canada indicated an increasing worry among Canadians regarding their job security and financial health due to ongoing trade tensions. Previous data showed 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.