Unemployment rate continues to rise in Canada

Canada has seen a significant uptick in its unemployment rate, reaching 6.1% in March, as more individuals actively sought employment in an economy grappling with high-interest rates.

Statistics Canada, in a statement released on Friday, April 5, reported a decline in employment across various sectors, including hospitality and food services, wholesale and retail trade, and professional, scientific, and technical services.

However, there was a silver lining as jobs were created in the healthcare and social assistance sectors. Additionally, there was a notable increase in the average hourly wage, rising by 5.1% compared to the same period in 2023.

Despite these positive indicators, the employment rate—the proportion of the population aged 15 and over who are employed—continued its downward trend for the sixth consecutive month, now standing at 61.4%. This decline is attributed to a population boom, adding to the country’s labor supply.

The surge in unemployment coincides with the burden of high borrowing costs on businesses and robust population growth, further exacerbating the strain on the labor market.

Compared to the previous year, the unemployment rate saw a one-percentage-point increase, reflecting ongoing economic challenges.