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Special Report

Canada Employment Research Brief

April 2025

Labour Market Softens as Tariff Backdrop
Creates Uncertainty for Investors

 
Economy loses jobs. Canada’s economy was heading into 2025 with strong momentum. Lower interest rates were fuelling hiring intention – monthly employment gains averaged 70,000 positions between November and January – which in turn drove household consumption and economic growth. Recent tariff uncertainties, however, have curbed business and consumer confidence, which have now begun pulling through into Canada’s labour market. Following a largely unchanged reading in February, Canada’s economy shed 33,000 jobs in March. Well-below the consensus estimate of a 10,000-position gain, this represented the largest monthly drop in roughly three years. Consequently, the three-month moving average growth rate fell to 15,000 jobs in March — down from 56,000 last month. The unemployment rate also ticked up 10 basis points to 6.7 per cent.

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