Canada’s labour market showed modest signs of recovery in March, with the addition of 14,000 jobs, according to Statistics Canada. Despite the gains, the national unemployment rate remained unchanged at 6.7 per cent, reflecting ongoing economic uncertainty.
The latest figures come after a significant setback in February, when the economy lost 84,000 jobs, pushing the unemployment rate up from 6.5 per cent. March’s numbers suggest stabilization rather than a strong rebound.
Job growth was primarily driven by the “other services” category, which includes repair and maintenance roles. Gains were also recorded in professional, scientific and technical services, along with the natural resources sector. Notably, natural resources employment rose by three per cent, adding around 10,000 jobs nearly half of which were concentrated in Alberta.
Meanwhile, the manufacturing sector, often sensitive to trade conditions, posted only marginal gains. In contrast, the finance, insurance, real estate and leasing sector experienced the most significant job losses during the month.
Healthcare employment remained largely unchanged in March, but the sector has seen strong growth over the past year, adding 94,000 jobs. Over the same period, manufacturing employment declined by 44,000 positions, highlighting a shift in the country’s job landscape.
Wage growth provided a positive signal for workers. Average hourly earnings rose by 4.7 per cent compared to a year earlier, accelerating from February’s 3.9 per cent increase and marking the fastest pace of growth in 18 months.
Across different age groups, unemployment rates showed little movement. Among core-aged workers (25 to 54), the rate held steady at 5.8 per cent. Youth unemployment, which had climbed sharply in February to 13.8 per cent, remained unchanged in March and below its recent peak of 14.6 per cent in September 2025. For Canadians aged 55 and older, unemployment stood at 4.9 per cent.
Despite the steady numbers, economists caution that challenges remain. Nathan Janzen of Royal Bank of Canada noted that economic “headwinds” persist. He pointed to ongoing trade uncertainties ahead of negotiations to renew the CUSMA agreement, as well as rising energy costs that are putting pressure on household spending.
Overall, while March brought some stability to Canada’s job market, the outlook remains uncertain as global and domestic pressures continue to weigh on economic growth.
