Canadian economy adds 35,000 jobs in March, unemployment rate steady at 5%
Posted April 6, 2023 8:11 am.
Last Updated April 6, 2023 9:39 am.
The Canadian economy added 35,000 jobs in March, as the country’s unemployment rate remained unchanged at five per cent — hovering near record lows.
#BREAKING Canada adds 35,000 jobs in March (est. up 7,500), Unemployment rate holds steady at 5%.
It's the 7th consecutive month for job creation which will test the Bank of Canada's resolve to hold interest rates steady on April 12th.https://t.co/lPxT58ubQG— Mike Eppel (@eppman) April 6, 2023
In its latest update, Statistics Canada said sectors that saw job gains were in transportation and warehousing, business, building and other support services, real estate, as well as rental and leasing.
The industries that reported job losses were in construction, other services and natural resources.
Employment also increased in Ontario, Alberta, Manitoba, and Prince Edward Island, however, fewer people were employed in Saskatchewan.
It’s the seventh consecutive month for job creation, and the fourth month in a row the unemployment rate has held at five per cent.
Worker wages also continued to grow, with average hourly wages up 5.3 per cent on a year-over-year basis in March.
The Bank of Canada has been monitoring wages as an inflationary figure and has raised interest rates significantly to cool things off, which hasn’t shown up yet in the monthly labour market statistics.
Last month, the central bank held its key interest rate steady for the first time in a year at 4.5 per cent based on its assessment of recent economic data. However, the latest jobs report will test the bank’s resolve to hold interest rates steady at its next update on April 12.
The Canadian labour market has been tight for months, despite high interest rates raising the cost of borrowing for people and businesses.
However, the labour market tightness isn’t expected to last forever. The Bank of Canada’s aggressive rate hikes since March 2022 are expected to weigh on the economy, with economists forecasting a significant slowdown this year.
With files from Mike Eppel
