Canada’s economy adds 14,000 jobs in March after February’s whopping losses

Canada’s economy added a modest 14,000 jobs in March, Statistics Canada said on Friday, clawing back a fraction of the sharp job losses seen during the first two months of the year.

The data agency’s previous Labour Force Survey from February showed a loss of 84,000 jobs, a result that was largely a surprise to economists and analysts.

Given the earlier losses, “no one is going to mistake this small back-up as a sign of strength,” wrote Douglas Porter, chief economist at Bank of Montreal, in a note to clients.

“Still, even a small plus sign is a positive, as is the stable jobless rate,” wrote Porter. The unemployment rate was unchanged at 6.7 per cent, and there was little variation in the number of full- and part-time employees in March.

Employment was up in the natural resources industry and the “other services” industry, which includes sectors like personal and repair services. Jobs declined in finance, insurance, real estate, rental and leasing.

The number of private and public sector workers was little changed, though the number of workers in the public sector has been growing at a faster rate on a yearly basis.

Average hourly wages were up 4.7 per cent, or $1.68, for a total average hourly wage of $37.73, which Statistics Canada noted is the highest growth rate for wages since October 2024.

“The only really new news here is that wages seemingly popped, which the Bank of Canada will keep on eye on, particularly as it is already on high alert for signs of any spillover from higher energy prices to broader inflation,” wrote Porter.

The Bank of Canada’s next interest rate announcement is on April 29.