Employment Drops for the First Time in Over Two Years
OTTAWA — Canada’s labour market posted a concerning reversal in March, as total employment declined by 32,600 jobs, marking the first monthly drop since early 2022, according to new data released Friday by Statistics Canada.
The national unemployment rate rose to 6.7%, aligning with forecasts but reflecting deeper worries in the economy. While February’s job growth had already flattened, this March contraction confirms that economic momentum is softening — and quickly.
The downturn was primarily driven by a sharp drop in full-time positions, a signal that employers are making deeper structural changes rather than trimming hours or seasonal staff.
Full-Time Jobs Take the Biggest Hit
Full-time employment losses were the core of the decline, pointing to more than just temporary workforce adjustments. While part-time employment held steady, the loss of secure, full-time work is especially troubling as it tends to reflect confidence (or lack thereof) in long-term economic stability.
Many economists viewed the drop as a correction following the impressive three-month hiring surge of 211,000 jobs between November and January. However, the fact that hiring didn’t just slow — but actually reversed — suggests that broader macroeconomic factors are weighing more heavily than previously anticipated.
Tariff Anxiety Freezes Hiring Across Key Sectors
At the heart of the slowdown is mounting uncertainty over trade policy, particularly U.S. President Donald Trump’s sweeping new “Liberation Day” global tariffs, which have sent economic shockwaves through global markets.
Canadian businesses, particularly in export-heavy industries such as manufacturing, resources, and transportation, are grappling with increased costs, shifting supply chains, and unpredictable access to key markets. The result? Hiring freezes, postponed investments, and in some cases, outright layoffs.
“Companies are sitting on the sidelines, unsure how to plan beyond next quarter,” said Sarah Lund, a senior economist with RBC. “If tariffs stick — or get worse — this could be the early phase of broader job market instability.”
These concerns were echoed across markets, where uncertainty has already contributed to stock sell-offs, currency fluctuations, and investor caution, dragging down consumer confidence and corporate hiring.
What It Means for Thunder Bay and Northwestern Ontario
For communities like Thunder Bay, the national job dip is more than just an abstract data point — it’s a harbinger of regional impact.
The local economy is closely tied to forestry, mining, shipping, and manufacturing, all of which are highly exposed to global trade dynamics and U.S. economic policy.
If tariffs on Canadian goods persist or worsen, it could threaten jobs in mills, transport hubs like the Port of Thunder Bay, and local suppliers who rely on cross-border commerce. Already, employers are voicing concern about tighter margins and the prospect of having to make tough staffing decisions.
Meanwhile, consumers in Thunder Bay may also feel the pressure as rising import costs and reduced job certainty tighten household budgets.