Canada’s job market took a significant hit last month as employers cut 33,000 jobs across the nation. This marks the largest monthly job decrease since January 2022. The unemployment rate rose slightly from 6.6% in February to 6.7% in March 2025. Despite the job losses, total hours worked increased by 0.4%, and average hourly wages grew by 3.6% compared to last year.
Several sectors experienced significant job cuts. Wholesale and retail trade lost 29,000 jobs after gaining 51,000 positions in February. The information, culture, and recreation sector shed 20,000 jobs. Agriculture lost 9,300 positions, while manufacturing cut about 7,000 jobs. Business, building, and support services declined by 10,300 jobs.
Job losses hit multiple sectors, with wholesale and retail trade experiencing the sharpest decline despite recent gains.
Ontario was hit hardest with 28,000 jobs lost, mainly in its manufacturing sector. Alberta followed with 15,000 job cuts, mostly in energy. Other provinces saw smaller changes in employment numbers.
U.S. tariffs on steel, aluminum, and auto products have damaged trade-dependent industries. Economic uncertainty from trade disputes and recession fears are driving layoffs. The private sector felt the most impact, losing 48,000 jobs, while public sector employment remained stable.
Full-time positions decreased by 62,000, though this was partially offset by 29,500 new part-time jobs. These losses represent a stark reversal after strong job growth in previous months, including 76,000 jobs added in January 2025. Some areas saw growth, with “other services” adding 12,000 jobs and utilities gaining 4,200 positions.
Economic experts worry about a potential recession as job losses mount and tariffs continue. They predict more layoffs in trade-related sectors. The Bank of Canada may lower interest rates to 2.5% to help stabilize the economy.
Looking ahead, job markets will likely remain weak if U.S. tariffs and economic instability continue. Rising car prices could further hurt the automotive industry. Wholesale and retail trade will likely see ups and downs as consumer demand changes. Manufacturing and agriculture jobs will remain vulnerable to trade policies.
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