Little change to employment rate

Employment changed little in March compared to the previous month, with the economy shedding 2,200 jobs or dropping

0.1 percentage points to 61.4 per cent, Statscan reports.

The unemployment rate rose 0.3 percentage points to 6.1 per cent in March. On a year-over-year basis, the unemployment rate was up one percentage point. Ontario is the only province to report an increase in employment at 26,000 jobs or 0.3 per cent.

Young workers continued to bear the brunt of the slowdown with employment among those aged

15 to 24 dropping 28,000 and the jobless rate rising to 12.6 – the highest it’s been since September 2016 outside of the pandemic of 2020 and 2021.

Buoyed by gains in manufacturing and construction, employment rose in the goodsproducing industry. Despite increases in health care and social assistance, employment in the service economy dropped, with notable declines in accommodation and food services, wholesale and retail trade, and professional, scientific and technical services.

Temporary workers

The federal government’s plans to curb inflows of temporary residents will have “important implications” for the labour market, The Conference Board of Canada reports.

Because the market relies on temporary residents including international students and temporary foreign workers to fill job vacancies across several economic sectors, the move will increase competition for workers, particularly in low-wage sectors.

“Against a backdrop of weak productivity growth, boosting competition among Canadian firms may not be a bad thing, with competition serving as an engine of productivity-enhancing investment,” the board says.