The Canadian economy threw 33,000 jobs in March according to Statistics Canada, the largest loss since January 2022.
The agency said the unemployment rate also increased a little more, increasing to 6.7 percent in March 6.6 percent in February.
The general decrease also occurred since 62,000 full -time jobs were lost in the month, partly compensated for a gain in part -time employment.
The latest data show a reversal of some of the employment growth that occurred at the end of last year and in January. While February registered quite stagnant jobs, January 76,000 new jobs were created and December had 91,000.
The coup occurred in the midst of greater uncertainty caused by US tariffs that have threatened economic growth.
Canada’s RSM economist, your Nguyen, said the result was a look at what can be in the store, since the commercial dispute with the United States increases and the country faces the possibility of a recession.
“We saw many layoffs in commerce in March and we hope that April will see even more layoffs and an increase in the unemployment rate,” he said. “Some manufacturing plants, especially in car production, have already fired their workers.”
The Stellantis automation manufacturer confirmed yesterday that they will stop production in their windsor, Ontario. Assembly plant for two weeks in April. A company spokesman said that 3,200 Canadians would be affected, although these works are not captured in the March numbers published today of Statistics Canada.
In fact, Senior Brendon Bernard economist said slow hiring contributed to the fall in the works. It also adds problems due to tariffs is likely on the horizon.
“This rate is not bad for historical standards, but we are still waiting for the real success of the commercial war. With the global values markets that now fall, storm clouds on the horizon are approaching quickly,” Bernard said in a statement.
But Doug Porter, BMO chief economist, said commercial uncertainty is not completely guilty of job losses so far.
“The weakness was quite wide that it was not only in the sectors that would be directly related to trade,” he said. “But this is [one of] The weakest reports we have seen in several years. “
The Statscan data showed that the wholesale and retail commercial sector lost 29,000 jobs in March, after an increase of 51,000 in February. The information, culture and recreation sector lost 20,000 jobs, while the agricultural sector lost 9,300. Meanwhile, the “other services” sector, which includes personal and repair services, added 12,000 jobs. Public services added 4,200.
The total hours worked increased by 0.4 percent in March, after a drop of 1.3 percent in February. Average hourly salaries among employees also increased 3.6 percent year after year in March.
Puts the Bank of Canada in a difficult place: expert
The Bank of Canada will make its next interest rate decision on April 16, and economists say this data complicate that option for the Central Bank. The loan rate is currently 2.75 percent, after a bank cut last month.
The general rule for central banks is that they increase the loan rate to tame inflation, but reduce the rate when unemployment is greater. Nguyen said that the fact that there is still underlying inflation hinders the decision of the Bank of Canada.
Only 12 hours after the US automatic tariffs came into force, Stellantis temporarily closed its Windsor assembly plant, Ontario, and fired thousands of workers. Multiple automotive plants in the United States and Mexico have also announced temporary dismissals.
“But given how weak it is the March job report and, since we are providing a recession given the current tariff rate, I think the Canada Bank could consider reducing the interest rate to 2.5 percent,” he said.
Porter also says that the economic situation of the last 48 hours increases the chances of the Canada Bank to reduce interest rates in mid -April.
The United States sees an unexpected increase in jobs
On the southern side of the border, where the US Department of Labor.
Non -agricultural payrolls in the US increased by 228,000 jobs last month, after a revised increase of 117,000 in February, the department said in its employment report observed closely on Friday.
Economists surveyed by Reuters had predicted an increase less than 135,000 jobs, after a previously 151,000 increase in February.
The unemployment rate increased to 4.2 percent of 4.1 percent in February. The labor market is being supported by low layoffs, generating solid salary gains that are helping to maintain economic expansion.
But companies have doubted to hire due to the uncertain commercial policy of the United States. That precaution could give way to work cuts after the president of the United States, Donald Trump, presented radical tariffs on Wednesday.
The Americans offered opinions found on the new rates of President Donald Trump, outside the New York Stock Exchange on Thursday. The US stock market led a global market amid fears of an increase in the costs of companies and households.
Trump Blitz rates since they returned to the White House have already disturbed businesses, many of whom had encouraged their electoral victory in November. The report could offer some short -term relief to financial markets that are carried out by import tariffs.
Data and feelings surveys have suggested that the economy stagnated in the first quarter due to the uncertainty of commercial policy and winter storms. Economists are not ruling out in the next 12 months either.
The president of the Federal Reserve, Jerome Powell, said Friday that the high level of uncertainty could lead to greater unemployment in the future.
But the central banker also addressed the tension between the real economic data that are positive, such as work numbers today, and “soft” economic data such as surveys and industry analysis that points to a slowdown.
“We are closely observing this tension between hard and soft data. As new policies and their probable economic effects become clearer, we will have a better sense of their implications for the economy and monetary policy,” Powell said.
