“The wheels may be starting to fall off the Canadian labour market.”
Canada’s job market took a hit in March 2025, with the economy losing 33,000 jobs, pushing the national unemployment rate up to 6.7%. The decline contrasts with economists’ expectations of a modest job gain, signaling potential weakness in the labor market.
The job losses were spread across multiple sectors, with significant declines in construction and manufacturing. Meanwhile, employment in the services sector remained largely stable. Analysts suggest that economic uncertainty and slowing business investment have contributed to the downturn.
Some economists believe the weak employment data could prompt the Bank of Canada to consider interest rate cuts in the coming months to stimulate growth. However, others warn that inflationary pressures might limit the central bank’s ability to ease monetary policy.
“The U.S. labor market outperformed expectations by adding 228,000 jobs.
The U.S. economy added 228,000 jobs in March 2025, surpassing economists’ forecasts of 137,000 and exceeding the 12-month average of 158,000. Despite the strong job growth, the unemployment rate rose slightly to 4.2% from 4.1%, reflecting an increase in labor force participation.
Key sectors such as healthcare, transportation, and warehousing experienced significant employment gains, while federal government jobs declined by 4,000. Wage growth showed signs of moderation, with average hourly earnings rising by 3.8% year-over-year, down from 4% in February.
Economists are divided on the implications of the latest jobs report. Some view it as a sign of a resilient labor market, while others caution that recent tariff implementations could dampen future growth. The Federal Reserve is expected to consider these factors in its upcoming policy decisions.