The Canadian labor market showed troubling signs in March, with employment falling by 33,000, the first decline since early 2022. The employment rate dropped to 60.9%, while the unemployment rate edged up to 6.7%, marking a reversal of the gains seen in late 2024 and early 2025. These figures suggest that economic momentum is faltering, raising concerns about the resilience of the recovery.
Job losses were concentrated among men aged 55 and older, who saw employment drop by 21,000 , continuing a downward trend for this group since January. Core-aged men (25 to 54 years old) also experienced slight declines, while other demographic groups showed little change. Youth employment remained stagnant, with year-over-year declines in employment rates for both young men and women.
Sectoral data painted an uneven picture. Wholesale and retail trade suffered a significant blow, shedding 29,000 jobs, while information, culture, and recreation saw a sharp decline of 20,000 jobs. Gains in smaller sectors like utilities (+4,200) and personal services (+12,000) offered little solace against broader losses.
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Regionally, Ontario and Alberta bore the brunt of the downturn, losing 28,000 and 15,000 jobs respectively. Saskatchewan was a rare bright spot with a modest gain of 6,600 jobs.
While total hours worked rose slightly (+0.4%) in March after February’s steep decline (-1.3%), the uptick did little to offset broader labor market challenges. Long-term unemployment remains a growing concern, with nearly one-quarter of unemployed individuals searching for work for over six months—up from 18.3% a year earlier.
The private sector shed 48,000 jobs, signaling potential caution among employers amid economic uncertainty. Although wages grew by 3.6% year-over-year in March to $36.05 per hour, this increase may do little to alleviate concerns about job security as unemployment rises and full-time positions disappear.
