Canada saw a notable increase in its unemployment rate in March, elevating concerns about the country’s labor market stability. The unemployment rate surged by 0.3 percentage points, reaching 6.1%, a significant climb from the previous year, marking a 1.0 percentage point increase.
This upward trend reflects a growing challenge in the labor market, exacerbated by a significant rise in the number of individuals searching for work or on temporary layoff, which swelled by 60,000 (4.8%) in March alone. The total number of unemployed persons soared to 1.3 million, representing a sharp 23.0% rise compared to the year before.
The employment scenario hit youth aged 15 to 24 hardest, who saw a 1.0% decline in employment, losing approximately 28,000 jobs. The sectors hardest hit included accommodation and food services, wholesale and retail trade, and professional, scientific and technical services. Despite modest employment gains in certain industries like health care and social assistance, the overarching narrative remained one of stagnation and growing unemployment.
Moreover, this increase in the unemployment rate comes amid Canada experiencing its fastest population growth rate since 1957, further straining the labor market. The discrepancy between employment growth and population growth suggests that new entrants into the labor market are finding it increasingly difficult to secure employment, a trend underscored by the labor force participation rate’s slight decline.
Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses
