Canada’s labour market posted modest growth in March, with employers adding 14,000 jobs after two straight months of significant losses earlier in the year, according to new data released by Statistics Canada.
The national unemployment rate remained unchanged at 6.7 percent, roughly in line with economists’ expectations.
Statistics Canada said employment levels were largely steady across age groups, sectors and employment types, with little variation between full-time and part-time positions or between public and private sector jobs.
Economists say the figures suggest the labour market may be stabilizing, though signs of weakness remain.
“The bleeding stopped after two consecutive monthly employment declines, but March’s data continue the trend of soft labour market performance to start this year,” said Marc Desormeaux, vice-president of policy and economist at the Business Council of Canada.
Job growth was largely driven by the “other services” category, which includes repair and maintenance industries. The sector added 15,000 jobs in March, offsetting a similar loss recorded in February.
Additional gains were recorded in professional, scientific and technical services, as well as in natural resources and tariff-sensitive manufacturing industries.
However, several sectors saw declines. Finance, insurance, real estate and leasing recorded the largest drop, losing 11,000 jobs — the first notable monthly decline for the sector since November 2023.
Manufacturing continues to face pressure from trade tensions. The sector has lost 44,000 jobs compared with March of last year, when the United States first imposed tariffs on Canadian steel, aluminum and automobiles.
Desormeaux noted that the softness in the labour market is beginning to spread beyond goods-producing industries into services.
Regional employment data also revealed challenges in British Columbia, where 19,000 jobs were lost in March following a similar decline in February. The province’s unemployment rate rose to 6.7 percent, its highest level in roughly a decade outside the COVID-19 pandemic period.
Despite the slow hiring pace, wages are rising faster.
Average hourly wages increased 4.7 percent year-over-year in March, up from 3.9 percent in February and marking the fastest pace of wage growth since October 2024.
Statistics Canada said part of the increase reflects a change in the composition of jobs, as fewer lower-paying positions are being added to the labour market. When adjusting for those factors, wage growth was closer to 3.6 percent, consistent with levels seen earlier in the year.
The March job gains follow a volatile period for Canada’s labour market. Strong employment growth during the final months of 2025 was partly reversed after more than 100,000 jobs were lost across January and February 2026.
Overall employment is still higher than a year ago, with 87,000 additional jobs compared with March 2025.
Economists say the outlook remains uncertain due to global economic pressures, including the ongoing Iran conflict and its impact on global energy markets.
TD Bank senior economist Andrew Hencic said the Canadian economy continues to move forward unevenly.
“With the economy progressing in fits and starts and uncertainty remaining high, the outlook is for subdued job growth and a steady unemployment rate,” he said.
The data release also provides the Bank of Canada with its final snapshot of labour market conditions before its next interest rate decision scheduled for April 29.
Financial markets currently expect the central bank to keep rates unchanged, with market data suggesting nearly a 95 percent probability of a rate hold.
