Sharp Job Loss Hits Canadian Economy in March

The Canadian economy experienced its largest job loss since 2022 in March. Statistics Canada reported on Friday that 33,000 jobs were lost last month, causing the unemployment rate to rise by 0.1 percentage point to 6.7 per cent.

The report noted that uncertainty over tariffs has impacted new hiring and triggered some layoffs. The most significant drop in employment occurred in the private sector. Most economists had anticipated signs of weakness in the job market in March, as companies delayed investment and hiring amid ongoing tariff concerns.

According to Statistics Canada, a total of 1.5 million people were unemployed last month, which is an increase of 36,000 from the previous month and 167,000 compared to a year earlier. With this latest report, attention now turns to the Bank of Canada, which is set to announce its next interest rate decision on April 16.