Canada’s Unemployment Rate Fell to 7.5% in March as Economic Recovery Gains Momentum
Canada’s labour market exceeded expectations for a second month in a row as the economy added 303,100 jobs in March, fuelling further prospects of a strong economic recovery.
According to the latest Labour Force Survey published by Statistics Canada, the country’s unemployment rate dropped 0.7% to 7.5% in March, after the economy added another 303,100 more jobs following an increase of 259,200 in the prior month. This brings Canada’s employment within 1.5% of levels observed in February 2020.
With a number of public health restrictions eased or lifted in several key provinces in March, those industries most affected by the Covid-19 pandemic were able to recoup some of their employment losses. Employment in retail trade rose by 4.5% last month, bringing the number of jobs back to the pre-pandemic levels observed in February of last year.
Similarly, employment in information, culture and recreation jumped by 9.4% for the first time since September, fully offsetting the declines over the past five months. On the other hand, although the accommodation and food services sector added a total of 21,000 more jobs in March, employment in this category continues to remain the farthest behind, and is 24.4% below February 2020 pre-pandemic levels.
Employment levels rose across seven of the ten provinces in March, but remained unchanged in Saskatchewan, New Brunswick, and Nova Scotia. The country has now recovered all but 296,000 of the 3 million jobs that were lost throughout the pandemic, highlighting the strength in the Canada’s economic recovery thus far. The resiliency has set forth expectations for the rebound to continue in 2021, even potentially undermining the need for additional government stimulus.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
