What happened
Statistics Canada's March labour force survey showed little change after a volatile start to the year, as reported by Talent Canada. Employers added 14,000 jobs, roughly what economists expected. The unemployment rate stayed at 6.7 per cent.
The gain follows two weak months. January and February together shed more than 100,000 positions, which partly reversed a fast run of hiring at the end of 2025. Growth in March was led by "other services," a category that includes repair and maintenance. Professional, scientific and technical services, natural resources and tariff-sensitive manufacturing also added jobs. Finance, insurance, real estate and leasing, and food and accommodations led the losses.
Manufacturing is still down 44,000 jobs from March 2025, when the United States first imposed tariffs on Canadian steel, aluminum and autos. CIBC economist Andrew Grantham said employment in tariff-hit sectors looks to have stabilized at a lower level. British Columbia lost 19,000 jobs, following a similar loss in February, and its unemployment rate rose to 6.7 per cent, the highest in about a decade outside the pandemic.
Average hourly wages rose 4.7 per cent year over year, up from 3.9 per cent in February. StatCan said part of that comes from fewer lower-paying jobs in the mix. Adjusted for that, wage growth was 3.6 per cent. Grantham does not expect the faster pace to last. The Bank of Canada decides on rates on April 29, and markets expect a hold.
Why it matters if you are hiring
The market is not tight, but it is not collapsing either. Employers are not adding many jobs, and the labour force is not growing much, so qualified people are available but not in surplus for every role.
In manufacturing, the job losses have levelled off. Plants that held back on hiring may find skilled trades, maintenance and production supervisors easier to reach than a year ago, but the best of them will still have options. Finance and accounting teams face a softer market for roles in finance, insurance and real estate, which means more candidates for controller, analyst and accounts roles.
Pay is the number to watch carefully. The 4.7 per cent headline is inflated by the mix of jobs. The underlying 3.6 per cent is the better guide for salary budgets. In British Columbia, expect a wider candidate pool than usual.
One thing to do this week
Pull your open roles and compare each offered salary range to a 3.6 per cent annual increase over last year's range, not 4.7 per cent. Adjust only where a role is hard to fill, and leave the rest alone.
Traverse has placed operations, manufacturing, finance and other professionals with Canadian employers since 1997, and we can help you find the people you need when the market is uneven.