Canadian job market stabilizes in March with 14,000 new positions but 19,000 jobs lost in B.C.

After starting the year with two consecutive months of job losses, the Canadian labor market saw a slight rebound in March, adding 14,000 positions. According to the latest data from Statistics Canada, this marginal improvement aligns with the expectations of economists, holding the national unemployment rate steady at 6.7 per cent.

The growth was primarily driven by the "other services" category—which includes repair and maintenance—adding 15,000 jobs. Other sectors showing resilience included professional, scientific, and technical services, as well as natural resources and manufacturing. Conversely, the finance, insurance, real estate, and leasing sector experienced its first significant contraction since November 2023, shedding 11,000 positions.

The situation in British Columbia remains particularly concerning. The province lost 19,000 jobs last month, pushing its unemployment rate up to 6.7 per cent. Outside of the COVID-19 pandemic, this marks the highest jobless rate for the province in approximately a decade, highlighting a deepening regional divide in employment stability.

While job growth was modest, wages saw a significant spike. Average hourly wages rose by 4.7 per cent year-over-year, up from 3.9 per cent in February. StatCan noted that this rapid pace—the fastest since October 2024—is partly due to a decrease in lower-paying jobs within the economy, which artificially pulls the average wage growth higher.

Overall, total employment across the country has risen by 87,000 positions compared to the same time last year. This data will be a critical factor for the Bank of Canada as officials prepare for their next interest rate announcement scheduled for April 29.