Canada’s job market took a hit in March, marking its first employment decline in three years, according to Statistics Canada. A net loss of 33,000 jobs pushed the unemployment rate up to 6.7%, as businesses faced uncertainty stemming from U.S. trade policies and economic headwinds.
The decline was largely driven by full-time job losses, particularly in the private sector, affecting industries like retail, wholesale, information, culture, and recreation. Analysts suggest that concerns over new U.S. tariffs, including the 25% duties on certain cross-border vehicles, have made companies cautious about hiring and investments.
While Canada was spared from the broad global tariffs announced by U.S. President Donald Trump, economic tensions remain high. The U.S. had threatened additional tariffs over issues like illegal immigration and fentanyl trafficking, but those have been temporarily paused.
Analysts believe this downturn may signal the beginning of a broader slowdown. CIBC’s Andrew Grantham warned that “the wheels may be starting to fall off the Canadian labor market,” while TD’s James Orlando noted that rising political uncertainty is making businesses and consumers more hesitant.
With unemployment rising and job seekers struggling to find work, all eyes are now on policymakers to see how they will respond to Canada’s shifting economic landscape.
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