Canada's unemployment rate reached 6.1% in March

Canada's unemployment rate rose to 6.1 per cent this month as more people looked for work in March, Statistics Canada reported on Friday.

This figure has increased from 5.8 percent in February and is considered the largest increase in the unemployment rate since the summer of 2022. This increase in unemployment occurs while high interest rates have affected the economy and the country is facing strong population growth and an increase in the labor force. Unemployment has increased by one percent compared to the previous year. In this job market, young people feel most disappointed. Employment among people aged 15 to 24 in March decreased to 28,000 people and the unemployment rate for this group increased to 12.6%.

At the same time, employment increased in four industries, led by health care and social assistance. Statistics Canada announced that the increase in the unemployment rate was caused by 60,000 people looking for work or temporary layoffs.

The total number of unemployed people in the country reached one million and 300 thousand people last month, which has increased by nearly 250 thousand people compared to last year.

Despite weak labor market conditions, wage growth continued to grow rapidly, with average hourly wages rising 5.1% year over year.

Economists had expected the Bank of Canada to make its first interest rate cut in June or July, but given the unemployment data, forecasts are now leaning more toward June.

news source