Canada’s employment rose by 14.1k in March, slightly above expectations of 12.6k, offering a modest rebound after a cumulative decline of -109k over the first two months of the year. Despite the headline gain, both full-time and part-time employment showed little variation, suggesting underlying momentum remains limited.
Labor market conditions were broadly stable. The unemployment rate held at 6.7%, below expectations of 6.8%. Employment rate remained unchanged at 60.6%. Participation was also steady at 64.9%, indicating that the stability in unemployment partly reflects a lack of re-entry into the labor force rather than a strong pickup in hiring.
Wage growth, however, accelerated notably. Average hourly earnings rose 4.7% yoy, up from 3.9% in February and marking the fastest pace since October 2024. Adjusted for composition effects, wage growth was more moderate at 3.6% yoy. The combination of modest job gains and firmer wages presents a mixed picture, offering some relief after earlier weakness but not enough to signal a clear turnaround in Canada’s labor market.
