Canada’s unemployment rate surged to 6.1 percent in March as more individuals actively sought employment in an economy hampered by elevated interest rates.
According to a statement released on Friday, April 5, by Statistics Canada, job losses were observed in the hospitality and food sectors, as well as in wholesale and retail trade, and the professional, scientific, and technical services sectors. However, there was an increase in employment in health care and social assistance. Additionally, the average hourly wage experienced a 5.1 percent rise in March compared to the same period in 2023.
The employment rate, representing the portion of the population aged 15 and over who are employed, declined for the sixth consecutive month due to a population surge, currently standing at 61.4 percent.
The rise in unemployment coincides with the impact of high borrowing costs on businesses and persistent robust population growth, contributing to the expansion of the country’s labor pool. Year-over-year, the unemployment rate saw a one-percentage-point increase.
