Canada adds 35,000 jobs in March, 2023

Canada adds 35,000 jobs in March, 2023

The Canadian labour market showed resilience in March, 2023, as the economy added 35,000 jobs despite high interest rates and a global slowdown. The unemployment rate remained steady at five per cent, near its record low level.

According to Statistics Canada, most of the job gains were in transportation and warehousing, business services, and real estate sectors. On the other hand, construction, natural resources, and other services saw job losses. Employment increased in Ontario, Alberta, Manitoba, and Prince Edward Island, while Saskatchewan reported fewer workers.

The report also revealed that wages continued to grow at a robust pace of 5.3 per cent year-over-year in March. This indicates that employers are facing labour shortages and are willing to pay more to attract and retain workers.

The strong job numbers will put pressure on the Bank of Canada to raise interest rates again at its next meeting on April 12. The central bank has already hiked rates nine times since March 2022, bringing the benchmark rate to 4.5 per cent. However, some economists argue that the bank should pause its tightening cycle as the economy faces headwinds from trade tensions, geopolitical risks, and weakening consumer spending.

The Canadian economy is expected to slow down significantly this year, after growing by 2.7 per cent in 2022. The International Monetary Fund (IMF) recently lowered its growth forecast for Canada to 1.8 per cent for 2023, citing the impact of higher interest rates and lower oil prices.