March Jobs Report Showed Modest Hiring: Bank of Canada Expected to Stay on Sidelines

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March Jobs Report Showed Modest Hiring: Bank of Canada Expected to Stay on Sidelines

Geopolitics and trade-driven uncertainty continue to cloud Canada’s economic outlook, analysts say.

Vikram Barhat
Apr 10, 2026

Key Takeaways

• The Canadian labor market reported 14,000 job gains, a rebound from two months of losses.
• The economy remains vulnerable to the effects of the Iran war and tariff uncertainty, analysts say.
• The unemployment rate held steady at 6.7%.

The Canadian economy saw modest job gains in March, reversing the declines of the previous two months. But the figures are unlikely to alter the Bank of Canada’s interest rate path amid energy inflation and trade uncertainty, according to analysts.

According to the latest Statistics Canada report, the economy added 14,000 jobs in March, marking the first time employment numbers grew this year, and beating the FactSet estimate of 10,000 job gains for the month. ... The report also noted that the March unemployment rate remained unchanged at 6.7%, just below the 6.8% FactSet consensus estimate.

Employment gains were primarily led by the other services industry, which includes personal (such as laundry and hair care) and automotive and industrial machinery repair services. The industry added 15,000 jobs in March. There was also some strength in natural resources, which added 10,000 jobs. These gains were somewhat offset by declines in finance, insurance, real estate, rental, and leasing.

The numbers indicate persistent weakness in the labor market at a time when the fragile economy, already weighed down by US tariffs, now finds itself dealing with energy inflation caused by the Iran war.

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