Canada's unemployment rate jumped to 6.1 per cent in March as more people looked for work and job growth stalled -- solidifying expectations of a June interest rate cut.
Statistics Canada's labour force survey on Friday shows the jobless rate is up from 5.8 per cent in February, marking the largest monthly increase in the unemployment rate since summer 2022.
Employment was little changed last month, with the economy shedding 2,200 jobs, after modest increases over the last several months.
"The cracks that had been emerging within the Canadian labour market suddenly got a lot wider," wrote CIBC's executive director of economics, Andrew Grantham, in a client note.
The Marchjobs report is the last piece of major economic data the Bank of Canada has to consider ahead of its next interest rate decision on Wednesday.
Investors will be looking for any hints from the central bank on when it plans to begin lowering its key rate, which currently sits at five per cent.
Economists had been betting the Bank of Canada would deliver the first rate cut in June or July, however, expectations are now leaning more toward June.
Nathan Janzen, RBC's assistant chief economist says the jobs data throws some cold water on the strong economic growth figures from early 2024.
"For (the BoC), it'll be another reason to take the very strong GDP numbers that we've had early in 2024, with a bigger grain of salt," he said.
Statistics Canada reported last week that real gross domestic product increased by 0.6 per cent in January. The agency added that it expected growth continued in February with a preliminary estimate pointing to a 0.4-per-cent gain.
Janzen says other indicators such as rising business bankruptcies and dwindling job vacancies suggest the economy is feeling the bite of higher interest rates.
Canada's latest jobs data comes in stark contrast with employment figures south of the border also released Friday as the U.S. economy continues to be a global outlier.
U.S. employers added a sizzling 303,000 workers to their payrolls in March, bolstering hopes that the economy can vanquish inflation without succumbing to a recession in the face of high interest rates.
Meanwhile, Canada's risein unemployment comes as high borrowing costs weigh on businesses and strong population growth continues to add to the country's labour supply.
The unemployment rate was up one percentage point compared with a year ago.
"The problem is that we got a slight decline in employment at a time when the population is still increasing, very, very quickly. And that was the main cause of concern within this report," Grantham later said in an interview.
Statistics Canada says the rise in the jobless rate was driven by an increase of 60,000 people searching for work or temporarily laid off.
The total number of unemployed people in the country stood at 1.3 million last month, an increase of nearly 250,000 compared with a year ago.
Young people are particularly feeling the chill in the labour market. Employment among those aged 15 to 24 declined by 28,000 in March and the jobless rate for the group rose to 12.6 per cent, the highest it's been since September 2016 outside of pandemic years 2020 and 2021.
An RBC report released in January said students and new graduates, rather than new arrivals to Canada, are driving the increase in unemployment in the country.
"Close to half of the increase in the total number of unemployed people year-over-year in Canada ... were students that were not in the job market and have started looking for work," Janzen said.
Friday's report shows job losses last month were concentrated in accommodation and food services, followed by wholesale and retail trade and professional, scientific and technical services.
Meanwhile, employment increased in four industries, led by health care and social assistance.
Despite weaker labour market conditions, wage growth continued to grow rapidly, with average hourly wages rising 5.1 per cent annually.
Although economists are gearing up for rate cuts in the coming months, the job market is expected to remain weak for a while.
Janzen expects the unemployment rate to peak at 6.5 per cent in the third quarter of the year, noting interest rates will continue to restrict growth until they return to normal levels.
"It's not so much the Bank of Canada, when they start cutting interest rates, (will be) like stepping on the gas and helping the economy accelerate," he said. "It's just starting to ease off the brakes."
This report by The Canadian Press was first published April 5, 2024.
A $2.14-billion federal loan for an Ottawa-based satellite operator has Canadian politicians arguing about whether American billionaire Elon Musk poses a national security risk.
Police have arrested an 18-year-old woman who allegedly stole a Porsche and then ran over its owner in an incident that was captured on video.
Twenty-seven year Â鶹ӰÊÓ reporter and anchor John Vennavally-Rao shares his story of what it was like to have an ostomy bag as part of his health-care battle. 'I’m grateful for what it did to extend my life,' he writes in a personal column for CTVNews.ca.
Unusual flippered feet are making their way into the Saint Lawrence River this weekend. Led by underwater explorer and filmmaker Nathalie Lasselin, volunteer divers are combing the riverbed near Beauharnois in Montérégie to remove hundreds of tires that have been polluting the aquatic environment for decades.
A body has been found in the vicinity where a woman went missing on the Ottawa River near Pembroke, Ont. while kayaking Tuesday night, according to the Ontario Provincial Police (OPP).
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
It is not a great time to be a coffee drinker. In general, coffee bean prices are the highest they've been in more than a decade.
A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.
U.S. Vice President Kamala Harris on Saturday accepted an invitation from CNN to debate former President Donald Trump on October 23, challenging her rival to another engagement on a public stage in the final weeks of the campaign.
A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.
The London Police Service (LPS) is currently investigating a suspicious death in the east end.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A body has been found in the vicinity where a woman went missing on the Ottawa River near Pembroke, Ont. while kayaking Tuesday night, according to the Ontario Provincial Police (OPP).
A Calgary family on a trip to Chinook Centre experienced the lows and highs last week, when a stuffie went missing.
Unusual flippered feet are making their way into the Saint Lawrence River this weekend. Led by underwater explorer and filmmaker Nathalie Lasselin, volunteer divers are combing the riverbed near Beauharnois in Montérégie to remove hundreds of tires that have been polluting the aquatic environment for decades.
Donald Trump returned to North Carolina on Saturday, stumping in the southern battleground state with direct appeals to women, claiming he would be a better champion for them than U.S. Vice President Kamala Harris, who is vying to become the first female president.
Sheba, a 50-year-old seal at the Cornish Seal Sanctuary in southwest England, has far surpassed the average lifespan for seals and could be the oldest in captivity in the world.
The more Chelsea Walsh talked to the eccentric fellow American who seemed to pop up in every square and cobblestone street of Ukraine's capital, the more she got creeped out.
Specialist divers surveying the wreckage of the US$40 million superyacht that sank off Sicily in August, killing seven people including British tech tycoon Mike Lynch, have asked for heightened security to guard the vessel, over concerns that sensitive data locked in its safes may interest foreign governments, multiple sources told CNN.
Israel and Hezbollah exchanged fire on Saturday as rescue crews in Beirut searched the rubble of an apartment building that was leveled by an Israeli airstrike that killed at least 37 people, including one of the militant group's senior leaders as well as women and children.
A $2.14-billion federal loan for an Ottawa-based satellite operator has Canadian politicians arguing about whether American billionaire Elon Musk poses a national security risk.
Foreign Affairs Minister Melanie Joly says close to 45,000 Canadians are in Lebanon, months after warning there is no guarantee Ottawa can evacuate them if the situation deteriorates further.
The federal firearm buyback program has cost taxpayers nearly $67.2 million since it was announced in 2020, but it still hasn't collected a single gun.
A new study is adding to emerging research showing that exposure to metals such as cadmium, uranium and copper may also be associated with the leading cause of death worldwide, cardiovascular disease.
For some young people, a popular method for getting a quick high is by misusing laughing gas — and lately, that’s in the form of nitrous oxide from products sold by the company Galaxy Gas.
Looking after an adult with severe autism can be a full-time job. Ask any parent who has a child severely affected by autism spectrum disorder – it’s a job that can get more difficult as the child becomes an adult.
If something looks too good to be true, it might be. That's the message from Saskatchewan horticulturists after customers have come into their stores hoping to buy purple apple trees this month.
The owner of the shuttered Three Mile Island nuclear power plant said Friday that it plans to restart the reactor under a 20-year agreement that calls for tech giant Microsoft to buy the power to supply its data centers with carbon-free energy.
Lebanese authorities on Thursday banned walkie-talkies and pagers from being taken on flights from Beirut airport, the National News Agency reported, after thousands of such devices exploded during a deadly attack on Hezbollah this week.
Kathryn Crosby, who appeared in such movies as 'The 7th Voyage of Sinbad', 'Anatomy of a Murder,' and 'Operation Mad Ball' before marrying famed singer and Oscar-winning actor Bing Crosby, has died. She was 90.fff
'Saturday Night Live' will have a slew of famous faces to help kick off its historic 50th season when the show returns later this month.
The death of the Tragically Hip’s lead singer Gord Downie united fans across Canada in their grief, but in many ways pulled his bandmates apart.
It is not a great time to be a coffee drinker. In general, coffee bean prices are the highest they've been in more than a decade.
The maker of the popular party game Cards Against Humanity is accusing Elon Musk's SpaceX of trespassing on and damaging a plot of vacant land the company owns in Texas.
The Canadian Food Inspection Agency says a recall of Nutrabolics brand Feed Me Vegan Real Food Protein & Oats bars due to undeclared milk has been expanded.
Tattoos are becoming more common in today's society and, as a result, appear to be more acceptable in the workplace than they used to be.
The end of the day — when school, extracurricular activities and homework are (hopefully) finally done — is the window that many kids have for downtime. It can be a struggle to convince them not to go on their phones.
While slang may come and go, experts say the phenomenon behind them, which constantly churns out brand-new bon mots, is as old as language itself.
Kiefer Sherwood spent several nights last spring chasing Quinn Hughes around the ice and generally pestering the Vancouver Canucks.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Andre De Grasse, fresh off of winning Olympic gold in the 4x100-metre rally in Paris 2024, has been in Toronto for the latest few weeks as part of the Toronto International Film Festival.
General Motors (GM) has issued a recall for 38,000 vehicles for safety risks related to a software glitch, Transport Canada reported in a notice on Wednesday.
Chechen leader Ramzan Kadyrov has accused Tesla CEO Elon Musk of 'remotely disabling' his Cybertruck, which had been sent to the frontline of Russia's war in Ukraine.
An Ontario man says it is 'unfair' to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.
A six-year-old girl who was reported missing in northern B.C. earlier this week remains unaccounted for, and "significant resources from across the province" have joined in the search, police said Saturday.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
The Vancouver Canucks have signed Finnish goaltender Kevin Lankinen to a one-year contract.
A 23-year-old man has been arrested after one person was found dead at a home in Richmond Hill Saturday morning.
Toronto police say they have now identified a third person who they believe was involved in a shooting that left two men dead in North York earlier this week.
A man is fighting for his life in hospital a day after a vehicle smashed into several others in and around an intersection in Milton before flipping over.
The water coming from your taps might be a bit murky Saturday, but Calgary remains on schedule to end all water restrictions on Sunday.
A Calgary family on a trip to Chinook Centre experienced the lows and highs last week, when a stuffie went missing.
An estimated 8,000 volunteers mobilized across the city Saturday as the Calgary Food Bank went door-to-door collecting food and funds.
A potential move to LeBreton Flats for the Ottawa Senators is still years away, but questions and concerns are already being raised about what to do with the Canadian Tire Centre.
The Taste of Wellington 2024 wraps up Saturday in Ottawa.
A body has been found in the vicinity where a woman went missing on the Ottawa River near Pembroke, Ont. while kayaking Tuesday night, according to the Ontario Provincial Police (OPP).
Montrealers can get used to taking a stroll on several car-free streets during the summer in the years to come thanks to a new commitment from the city.
Three men were injured after trying to subdue a man armed with a knife during afternoon prayers at a Montreal-area mosque Friday afternoon.
Unusual flippered feet are making their way into the Saint Lawrence River this weekend. Led by underwater explorer and filmmaker Nathalie Lasselin, volunteer divers are combing the riverbed near Beauharnois in Montérégie to remove hundreds of tires that have been polluting the aquatic environment for decades.
The Edmonton Police Service is looking for a person of interest in connection with a suspicious fire that destroyed a multi-unit building and damaged several townhomes earlier this week.
Tattoos are becoming more common in today's society and, as a result, appear to be more acceptable in the workplace than they used to be.
Two people have been charged after a daylight shooting in Red Deer earlier this week.
Halifax Regional Police warned the public of a series of high-value thefts targeting retail stores Friday.
Pictou County District RCMP is investigating a fatal crash that occurred in Thorburn, N.S., Saturday.
A proposal for additional parking to accommodate upgrades at the Irving Pulp & Paper Mill in Saint John, N.B., would add an estimated 500 parking spots at Wolastoq Park.
The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.
A herd of dogs paid visit to patients and residents at Riverview Health Centre during an annual event that lifts spirits and wags tails.
While slang may come and go, experts say the phenomenon behind them, which constantly churns out brand-new bon mots, is as old as language itself.
Fire officials are investigating after a fire completely destroyed the community fridge in the Cathedral neighborhood.
The last two months after losing her daughter Bella have been extremely difficult for Kyla Thomson.
Regina police arrested three youths in connection to a bear mace incident at a Regina high school on Friday.
The Cambridge Professional Fire Fighters’ Association held their annual Muscular Dystrophy Boot Drive on Saturday.
Protests were held in front of Kitchener City Hall on Friday, both for and against LGBTQ2S+ inclusive education and queer rights in schools.
Police said the pedestrian, a 52-year-old man, was taken to an out-of-region hospital with life-threatening injuries and the driver of the vehicle failed to remain at the scene.
The 75-year-old building, formerly the Waskesiu Chamber of Commerce building, was relocated to the Parks Canada compound on the edge of the townsite.
Saskatchewan RCMP major crimes unit is investigating after a man’s body was found on Sweetgrass First Nation.
Heading into Friday's game against the Calgary Stampeders, quarterback Trevor Harris said he and his Saskatchewan Roughriders were "ready to rock."
Ontario’s police watchdog is investigating after an Ontario Provincial Police officer discharged his firearm at a 36-year-old man in near Moonbeam, Ont., on Friday night.
For some young people, a popular method for getting a quick high is by misusing laughing gas — and lately, that’s in the form of nitrous oxide from products sold by the company Galaxy Gas.
An Ontario woman is among the dozens of people who have come forward to allege that they were sexually abused by London-based businessman Mohamed Al Fayed, the former chairman and owner of Harrods.
A motorcyclist has died following a serious collision that took place in London’s south end on Friday afternoon.
The London Police Service (LPS) is currently investigating a suspicious death in the east end.
The St. Thomas police is asking the public for help locating a missing man.
The Barrie Skateboard Association (BSA) hosted a unique competition at the City's Skate Park on Saturday to celebrate its 25th anniversary, which showcased the park's importance and the growth of skateboarding in the region.
A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.
One person is in hospital after an e-bike crash in Orillia on Thursday.
The Amherstburg Freedom Museum is celebrating a year of festivities in anticipation of its 50th anniversary in 2025.
The St. Clair College golf teams were successful at the Niagara Knights Invitational tournament on Friday.
A LaSalle high school is celebrating its emerald anniversary this weekend, with everyone who has ever walked its halls invited to return.
A man who was found dead behind a curling rink in Nanaimo, B.C., earlier this month was the victim of a homicide, police confirmed.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A six-year-old girl who was reported missing in northern B.C. earlier this week remains unaccounted for, and "significant resources from across the province" have joined in the search, police said Saturday.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
Animal protection officers in British Columbia have rescued three pit bulls – including one that gave birth to 10 puppies – from a rat-infested home in Kelowna.
Despite the heavy rain, plenty of muscle turned up for United Way’s annual Pull the Bus fundraiser in Lethbridge Friday.
Lethbridge County has rescinded its fire restriction as a result of the recent cool, wet weathr.
The Lethbridge Hurricanes kicked off the 2024-25 season on a winning note Friday night, defeating the Edmonton Oil Kings 3-1 in a game played at VisitLethbridge.com Arena.
Following an outbreak of COVID-19 on its continuing care floor and just ahead of the flu season, St. Joseph’s General Hospital in Elliot Lake has opted to re-introduce a universal masking policy until further notice.
A 26-year-old driver from Surrey, B.C., has been charged with three counts of criminal negligence causing death and bodily harm in a crash that killed two youths in northern Ontario last year.
Ontario Provincial Police say three suspects from southern Ontario have been charged and drugs worth $300,000 have been seized following a traffic stop Sept. 16.
Newfoundland and Labrador's chief medical officer is monitoring the rise of whooping cough infections across the province as cases of the highly contagious disease continue to grow across Canada.
A 16-year-old biennial event aimed at fostering business in the country's eastern Arctic and northern regions has been cancelled indefinitely as a dispute unfolds between Inuit in Canada and a Labrador group claiming to share their heritage.
Jim Lester’s farm hopped on the cow-cuddling trend in early August, and his time slots have been pretty well sold out ever since.
The Shopping Trends team is independent of the journalists at Â鶹ӰÊÓ. We may earn a commission when you use our links to shop. Read about us.
