Canada’s unemployment rate has seen a significant increase, rising to 6.1 percent in March. This surge can be attributed to more people actively seeking employment in an economy that is grappling with high interest rates.
A press release issued on April 5 by Statistics Canada indicated that employment in industries like wholesale and retail trade, professional, scientific, and technical services, and hospitality and food services had decreased. On the other hand, there was an increase in jobs within the healthcare and social assistance sectors.
Despite the rise in unemployment, there was some positive news regarding wages. The average hourly wage saw a notable increase of 5.1 percent in March compared to the same period in 2023.
The employment rate, which represents the portion of the population aged 15 and over who are employed, experienced a decline for the sixth consecutive month. Currently, the employment rate stands at 61.4 percent. This decrease is partly due to a population boom, resulting in a larger labor supply.
High borrowing costs have caused businesses to face challenges, which can be linked to the increase in Canada’s unemployment. Additionally, the continuous growth of the population contributes to the increase in the labor supply. When comparing the unemployment rate to the same period last year, there was a one percentage point increase.
It is important to closely monitor these economic indicators to assess the overall health and stability of the Canadian labor market.
