Canada Job Market Report: Latest Stats & Trends (Mar 2025)

The March 2025 Canada job market report reveals a slightly tighter job market for newcomers. For those soon to arrive or recently arrived in Canada, knowing how the job market is performing will help you join the workforce. Discover growth sectors, unemployment rates, and factors affecting the job market.

Changes in the Canadian Job Market by Sector

According to Statistics Canada, 347,000 more people were working in March 2025 compared with March 2024. That’s a year-over-year gain of 1.7%.

These sectors saw good job gains in March:

The economy lost 33,000 jobs in March, the biggest job loss since January 2022. This loss in March followed February’s stagnant gain of just 1,100 jobs, which left the unemployment rate unchanged from January at 6.6%.

Until March, Canada enjoyed three consecutive months of growth in November 2024, December 2024, and January 2025, with 211,000 jobs.

Sectors with the most job losses in March were the wholesale and retail (-28,000), information and culture, (-20,300) and, business, building and other support services (-10,300).

Other sectors that saw job losses include agriculture, manufacturing, construction, educational services, accommodation and food services and health care and social assistance. 

Overall, there was a 62,000 drop in full-time jobs, and a decline of 48,000 private sector jobs.

March Unemployment Rates Across Canada

The unemployment rate measures the health of the economy and the job market. Amid the uncertainty created by the ongoing trade war with the United States, the unemployment rate rose to 6.7% from 6.6% in February.

Ontario and Alberta had sharp drops in employment, with job losses of 28,000 and 15,000, respectively. Saskatchewan gained 6,600 jobs, Nova Scotia gained 2,000, and Newfoundland and Labrador gained 1,600 jobs. The other provinces saw few changes.

Other Canada Job Market Report Highlights

• Saskatchewan led the way in job creation, followed by Nova Scotia
• British Columbia added 5,700 jobs
• Part-time jobs rose by 30,000
• Canada’s jobless rate remains below its recent high of 6.9% in November 2024
• Employment rates remain stable in the critical 25-54-year-old core age group.

Canada Job Market Report Surprised Many Economists

Canadian economists, such as Derek Holt, Scotiabank’s vice president and head of capital markets economics, predicted job market gains of 25,000 for March and a drop in the unemployment rate to 6.5%. Holt, however, remains unconvinced of the “accuracy” of the March decline in jobs, calling the report’s details “soft.”

“Nevertheless,” said Holt, “it still doesn’t matter in the face of the changed world we now have upon us with the (U.S.) trade war.”

Tu Nguyen, an economist with RSM Canada, said the March jobs report may indicate what Canadians can expect as the trade dispute with the U.S. intensifies.

“We saw a lot of layoffs happening in trade in March, and we expect April to see even more layoffs and a rise in the unemployment rate,” said Nguyen. 

Tariffs are Creating Economic Uncertainty

In March, the Donald Trump U.S. administration put tariffs on many imported goods from Canada, like steel and aluminum imports.

Trump has since threatened more tariffs. However, he has also announced multiple changes and delays, creating uncertainty for Canadian businesses and the job market. The uncertainty is also raising concerns about a global recession.

Inflation, Interest Rates, and the Job Market

Inflation unexpectedly fell to 2.3% in March, down from 2.6% in February. The drop was due to lower gasoline and travel tour prices.

Experts predicted inflation would rise in the short term during the trade war. However, the Bank of Canada warns that a lengthy trade war will cause economic damage and may lead to job losses due to layoffs.

Key factors driving Canada’s recent steady job growth before March have been lower inflation, interest rates, and a drop in international students and temporary foreign workers.

On April 16, the Bank of Canada opted to hold its interest rate at 2.75% following seven consecutive cuts. Many economists predict there will be more cuts in 2025, affecting both job creation and the cost of living.

Exactly what impact tariffs, inflation, and interest rates will have on the Canadian job market in the short- and long-term remains uncertain. So, newcomers watching the job market need to pay attention to these issues.

Outlook for the Canadian Job Market

Economists remain uncertain about the Canadian job market for the remainder of 2025 if the trade war does not end soon or escalates.

RSM economist Nguyen predicts Canadian job losses will continue as long as the tariffs remain in place and pose a threat.

Understanding job market trends is crucial for newcomers seeking to enter Canada’s job market. The job market losses in March reinforce the economic uncertainty that tariffs and the global trade war are creating.

Low inflation and steady interest rates indicate a resilient economy, despite the uncertainty surrounding the trade war. 

With a rapidly changing job market, it’s essential to consider how changes will affect job prospects in your specific industry and occupation. Researching job prospects for your profession in Canada is the key to your success. It will make it easier to continue your career if there is a strong outlook for your profession and sector.