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Canada's unemployment rate increased to 6.7% in March 2025, with Ontario and Alberta feeling the brunt of this month's labour market changes. But there's good news for Saskatchewan, which posted a 1.1% increase in employment.

Employment was down in March 2025, dropping by 33,000 jobs, or 0.2%, compared to the previous month. The employment rate slipped from 61.1% to 60.9%. Meanwhile, the unemployment rate inched up by 0.1 percentage points, reaching 6.7%. Total hours worked rebounded by 0.4% after February’s decline, but on a year-over-year basis, they climbed by 1.2%. Average hourly wages also rose 3.6%, suggesting wage growth is still running faster than inflation in many parts of the country.

In other words, Canada’s job market lost a bit of momentum in March 2025. Employment fell in wholesale and retail trade, as well as information, culture, and recreation. Ontario and Alberta experienced the most significant drops in jobs, whereas Saskatchewan was one of the few provinces to add positions. At the same time, self-employment remains on the rise. This all points to a labour market in which job seekers need to remain flexible and proactive.

You can see the data from Statistics Canada for March 2025.

Various commentators attribute March’s job numbers in large part to market uncertainty caused by U.S. tariffs.

Key Takeaways

  • Employment Decline: Canada’s job market lost 33,000 positions in March, bringing the employment rate down to 60.9%.

  • Unemployment Rate: The national unemployment rate edged up to 6.7%, still higher than pre-pandemic levels.

  • Sector Performance: Wholesale and retail trade shed 29,000 jobs, and information, culture, and recreation was down 20,000.

  • Regional Trends: Ontario (-28,000) and Alberta (-15,000) posted noticeable job declines, while Saskatchewan stood out with a gain of 6,600 jobs.

  • Wage Trends: Average hourly earnings grew 3.6% year-over-year, slightly behind February’s rate but still showing moderate wage growth.

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Regional Insights

Ontario and Alberta experienced the most significant employment drops in March.

Ontario lost 28,000 positions, pushing its unemployment rate up to 7.5%. Alberta’s decrease of 15,000 jobs was concentrated in manufacturing and wholesale and retail trade, which drove its unemployment rate to 7.1%.

Saskatchewan moved in the opposite direction, adding 6,600 jobs and boasting the country’s lowest unemployment rate of 4.9%. Quebec held steady overall, though its unemployment rate ticked up slightly to 5.7% because more people were searching for work.

The territorial picture remains consistent, with the Northwest Territories and Yukon maintaining employment rates above the national average (ie. they have lower unemployment). While most other provinces remained steady from February. This stability can be an opportunity for job seekers open to moving beyond Canada’s more populous provinces.

Market Challenges

Despite a modest rise in wages, the increased unemployment rate signals ongoing pressure in the labour market. Full-time employment took a hit in March, suggesting that economic uncertainty may be causing employers to scale back new hiring.

Job-seekers also seem to be facing more difficulty landing positions. Among those unemployed in February, fewer transitioned to employment in March than a year ago. Long-term unemployment has risen, underscoring the challenges certain groups face, including newcomers and those out of the workforce for extended periods.

Self-employment continues its upward climb—a sign that some Canadians are forging their own paths. However, limited access to private insurance benefits remains a hurdle for many self-employed workers. Addressing these gaps is crucial to ensuring inclusive growth that supports everyone in the workforce.

Job Opportunities for Newcomers

For newcomers looking to settle in Canada, these trends can be confusing. Employment is tightening in several regions, and certain sectors are shedding positions. In addition, the uptick in unemployment means competition could intensify, making a strong résumé and targeted networking more critical than ever.

On the bright side, wage growth continues, and many employers are still experiencing labour shortages, particularly in provinces with lower unemployment rates. If you’re planning to move, it’s worth exploring areas and industries that show resilience—like Saskatchewan, or niche sectors still adding jobs.

If you’re looking to land a role in Canada, it’s essential to put your best foot forward. Our resources can help.

Here are some new expert resources researched and published by the Moving2Canada team:

Of course, to be invited to interview you’ll need a strong, Canada-style resume, and usually an accompanying cover letter. We’ve helped tens of thousands improve their job search with the templates that come with a free Moving2Canada account. If you haven’t created your account yet, now is the time to jump on board. Create your Moving2Canada account here.

Expert resources to help immigrants get jobs in Canada

Canada’s job market provides a wealth of opportunity for newcomers, but it is only that — an opportunity.

To take full advantage, recent and prospective immigrants can leverage free government-funded resources and programs. We recently partnered with Canada InfoNet, a government-funded pre-arrival employment support program, to bring you two expert guides on transitioning to a career in Canada:

The outlook on Canadian construction and infrastructure

Ruairi Spillaine, Outpost Recruitment and Moving2Canada founder, analyzes what’s happening in the construction sector in Canada.

“Procurement of building materials during a potential trade war is going to create pandemic-style escalations in a construction sector that is already struggling with a prolonged period of higher rates. The addition of tariffs isn’t good news for the construction sector in Canada or the US

Canada's job market: Ruairi Spillane, founder of Outpost Recruitment
Moving2Canada and Outpost Recruitment Founder, Ruairi Spillane

 

If you are interested in working in Canada’s construction sector, Outpost helps motivated candidates find suitable jobs in Canada.

The agency works with general contractors, subcontractors, developers, and consultants who are hiring across senior management, operations, project management, site, design, quality, and commercial personnel.

Outpost Recruitment is actively looking for candidates for projects across Canada. View the latest job postings here.

How to take advantage in Canada’s job market

The Moving2Canada team has a special feature for people who want to get a job in Canada or accelerate their career here. Readers can now opt in to hear from recruiters and employers we partner with and upload a resume to their account, all for free.

We’re excited to help more newcomers and people wishing to move to Canada in their career goals.

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How to get a job in Canada

If you’re looking for a job in Canada here are some steps you can take to land that sweet, sweet Canadian job offer.

Here’s a popular webinar from recruitment expert and Moving2Canada founder, Ruairi Spillane, about how to create the best resume for the Canadian jobs market:

New and improved Jobs Board

We have worked hard over recent weeks to ramp up the number and range of job postings on our Jobs Board.

We also have a number of other resources for helping you find your career in Canada. You’ll find broad-stroke information that will arm you with the knowledge you need to succeed, as well as industry-specific insights into finding jobs by industry, such as teaching.

Don’t forget to complete or update your Moving2Canada profile to hear about job opportunities in your industry in Canada!

Want to dig deeper into the Canada Jobs Report data? Try these interactive tools, courtesy of StatsCan.

About the author

Stephanie Ford profile picture

Stephanie Ford

She/Her
Finance, Law and Immigration Writer
Stephanie is a content creator who writes on legal and personal finance topics, specializing in immigration and legal topics. She earned a Bachelor of Laws and a Diploma in Financial Planning in Australia. Stephanie is now a permanent resident of Canada and a full-time writer at Moving2Canada.
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Citation "Canada’s Unemployment Rate Ticked Up in March 2025, Amidst Tariff Uncertainty." Moving2Canada. . Copy for Citation