FILE PHOTO: A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto, January 23, 2015. REUTERS/Mark Blinch
Ottawa, Canada — Canada’s unemployment rate climbed in March to 6.1 percent, the statistics agency announced on Friday.
Unemployment had hit an annual rate of 5.8 percent in February.
Statistics Canada said in a statement that employment declined in the hospitality and food sectors, in wholesale and retail trade and in the professional, scientific and technical services sectors.
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Jobs were added in health care and social assistance. The average hourly wage rose 5.1 percent in March, compared with the same period in 2023.
The employment rate — the segment of the population aged 15 and over who are employed — fell for the sixth month in a row due to a population boom and now stands at 61.4 percent.
“The Canadian labor market is beginning to show more cracks,” Desjardins Bank economist Royce Mendes said in a note. “The economy shed 2K jobs in March, undershooting even our below-consensus call.”
Mendes said he expects the Bank of Canada to announce next week a plan to lower interest rates in the middle of the year.