Canada’s labour market showed signs of strain, with employment falling by 33,000 (-0.2%) and the unemployment rate rising to 6.7%. This marked the first significant decline in employment since January 2022, following three consecutive months of growth in late 2024 and early 2025. Despite positive trends in some sectors, the overall labour market remains challenging, with many workers continuing to struggle with rising unemployment and long-term joblessness.
The employment decline in March was primarily concentrated among men aged 55 and older, with a reduction of 21,000 (-0.9%) jobs in this group. This demographic has faced ongoing challenges, with a cumulative decrease of 47,000 jobs (-1.9%) since the start of the year. In contrast, women aged 55 and older, and youth (aged 15 to 24) showed minimal changes in employment. Employment among core-aged men (25 to 54 years old) also edged down slightly, while employment among core-aged women remained stable.
Across industries, wholesale and retail trade saw the largest employment decline, with a loss of 29,000 jobs (-1.0%), followed by a drop of 20,000 jobs (-2.4%) in information, culture, and recreation. On the other hand, sectors like utilities and personal and repair services showed positive growth, adding 4,200 (+2.8%) and 12,000 (+1.5%) jobs, respectively.
Regionally, Ontario and Alberta both experienced notable declines in employment, with losses of 28,000 (-0.3%) and 15,000 (-0.6%), respectively. The largest losses in these provinces were observed in sectors such as information, culture, and recreation, as well as manufacturing and wholesale trade. In contrast, Saskatchewan saw an increase of 6,600 (+1.1%) jobs, marking a positive trend in the province. Employment in Quebec held steady, while the unemployment rate rose due to more individuals actively seeking work.
The unemployment rate increased by 0.1 percentage points to 6.7% in March, the first rise since November 2024. This upward trend comes after a period of relatively stable unemployment rates, which had improved following strong employment growth at the end of 2024 and early 2025. The unemployment rate remains elevated compared to pre-pandemic levels, which averaged 6.0% from 2017 to 2019.
Long-term unemployment has also become a growing concern, with 23.7% of the unemployed in March 2025 having been out of work for 27 weeks or more, up from 18.3% in the previous year. Among those unemployed, the majority had lost their jobs due to layoffs (44.1%), although this figure represents a slight decrease from the previous year. A significant proportion of the unemployed (41.5%) had not worked in the past 12 months, which leaves them more vulnerable to fluctuating labour market conditions.
Despite the challenges in employment, average hourly wages showed growth, with a year-over-year increase of 3.6% to $36.05 in March. This was a slight decline from the 3.8% growth seen in February. The rise in wages suggests that while employment may be down, workers who remain employed are benefiting from increased compensation.
Self-employment also saw an increase, with 81,000 more self-employed workers in March 2025 compared to the same period in the previous year, marking a 3.0% rise. However, despite this growth, the proportion of self-employed workers remains below pre-pandemic levels. Additionally, a significant number of self-employed workers continue to lack access to health, dental, and disability insurance, exposing them to greater financial risks compared to their employed counterparts.