Employment in Canada fell by 33,000 in March, the first monthly decline in more than two years, as full-time work dropped and job losses mounted in retail and information sectors. The national unemployment rate edged up 0.1 percentage points to 6.7%, Statistics Canada said Friday.
The decline represents a pause after a period of modest gains, with the employment rate falling to 60.9%, down from 61.1% in February.
Full-time losses drive decline
The drop in March was led by a loss of 62,000 full-time positions, while part-time employment rose modestly. Private sector jobs fell by 48,000, ending a three-month streak of growth that had added nearly 100,000 positions. Public sector employment and self-employment were both little changed.
Sectors hit hardest included wholesale and retail trade, which lost 29,000 jobs, and information, culture and recreation, down by 20,000. Employment in agriculture also declined. In contrast, there were gains in utilities (+4,200) and other services such as personal and repair services (+12,000).
Older workers, men see sharpest declines
Among demographic groups, men aged 55 and older saw the steepest job losses, with employment falling by 21,000 in March. Their employment rate dropped to 38.8%, marking a third consecutive monthly decline.
Core-aged men (25 to 54) also experienced a slight decline in employment, while employment among core-aged women remained stable. Youth employment was little changed, though the unemployment rate for young women jumped 1.4 percentage points to 13.1%.
Job market tightens for unemployed
There were 1.5 million unemployed Canadians in March, up by 36,000 from the previous month. Year-over-year, that figure has risen by 12.4%. Long-term unemployment—defined as job seekers out of work for 27 weeks or more—rose to 23.7%, up from 18.3% a year earlier.
Fewer unemployed individuals found work compared to the same period last year. Just 14.7% of those unemployed in February secured employment in March, down from 18.6% a year earlier.
Of those unemployed, 44.1% had been laid off in the previous 12 months, while 14.3% had voluntarily left their jobs.
Provincial breakdown: losses in Ontario and Alberta
Ontario lost 28,000 jobs in March, marking the largest provincial decline, driven by losses in information, culture and recreation, and business support services. The province’s unemployment rate rose to 7.5%.
Alberta shed 15,000 positions, with job losses concentrated in manufacturing and retail. The province’s unemployment rate increased to 7.1%.
Saskatchewan posted the only notable increase in March, adding 6,600 jobs. Its unemployment rate fell to 4.9%, the lowest among provinces. Employment held steady in Quebec for the fourth straight month, but its unemployment rate rose to 5.7% as more people entered the labour force.
Self-employment and benefit coverage gaps
Self-employment rose 3% year-over-year to 2.7 million, yet remains below pre-pandemic levels as a share of total employment. However, most self-employed workers continue to lack access to key benefits. Only 43.3% reported having supplementary health coverage, 36.4% had dental plans, and 25.3% had disability insurance.
By comparison, more than two-thirds of employees had access to health or dental plans, and over half were covered by disability insurance.
Outlook remains uncertain
While total hours worked rose 0.4% in March and wages increased 3.6% year-over-year to an average of $36.05 per hour, the broader picture signals emerging weakness. The employment rate is below its recent peak, and the unemployment rate has hovered above pre-pandemic averages for over a year.
