There was an increase of 35,000 jobs in the Canadian economy last month, while the unemployment rate remained at 5%.
The majority of the job gains were in the private sector, according to Statistics Canada on Thursday. Among the sectors experiencing growth were transportation and warehousing, business, building, and other support services, as well as finance, real estate, rentals, and leasing.
As a result, construction jobs, other services, and natural resource jobs have been lost.
Wages continued to grow in March as employers continued to hire. On an annual basis, average hourly wages increased by 5.3%.
As a result of high interest rates, borrowing costs have risen for individuals and businesses in Canada for several months, the unemployment rate held at 5% in March for the fourth consecutive month, hovering near record lows.
Unemployed individuals are less likely to stay unemployed for an extended period of time, according to a report by Statistics Canada. There was a decline of 16% in the percentage of unemployed persons who had been unemployed for more than 27 weeks in March, compared with 20.3% the previous month.
Nevertheless, the tight labour market is not expected to last indefinitely. A significant slowdown is expected this year as a result of the Bank of Canada's aggressive rate hikes since March 2022.
Consumers and businesses are preparing for a slowdown, according to recent surveys released by the central bank earlier this week. There is a likelihood that consumers will reduce their spending, while businesses anticipate a decrease in sales.
An increase in unemployment is expected as a result of that pullback in the economy.
The surveys indicate that there are signs that the labour market is improving even as businesses continue to report labour shortages as their primary concern.
Source: Canadian Press
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