VPWS March 2025 Canadian Employment Update

VPWS March 2025 Canadian Employment Update

The March 2025 Labour Force Survey, released by Statistics Canada, paints a complex picture of a shifting job market as Canada navigates economic uncertainty. Here at VP Workforce Solutions, we’re breaking it down for you—because staying informed is the first step to staying ahead.

Overall Employment Trends

Employment in Canada fell by 33,000 jobs (-0.2%) in March, marking the first national decline since January 2022. The employment rate dropped to 60.9%, and the unemployment rate ticked up slightly to 6.7%.

  • Full-time work saw a significant decrease (-62,000 jobs), signalling a possible slowdown in economic momentum after steady growth through late 2024.

  • Private sector employment dropped by 48,000, while public sector and self-employment numbers remained stable.

Who Was Impacted

  • Older Men (55+) were most affected, with 21,000 jobs lost, a continuation of a three-month decline.

  • Core-aged men (25-54) saw a slight dip (-16,000), while women in the same age group saw no significant changes.

  • Youth employment held steady, but year-over-year data shows declining employment rates for both young women and men.

Industry Insights

Some sectors experienced setbacks:

  • Wholesale & Retail Trade: -29,000 jobs (-1.0%)

  • Information, Culture & Recreation: -20,000 jobs (-2.4%)

  • Agriculture: -9,300 jobs (-3.9%)

Bright spots included:

  • Other Services (personal, repair): +12,000 jobs (+1.5%)

  • Utilities: +4,200 jobs (+2.8%)

Provincial Breakdown

  • Ontario lost 28,000 jobs, especially in information, culture & recreation and support services. The unemployment rate rose to 7.5%.

  • Alberta dropped 15,000 jobs, mainly in manufacturing and retail, pushing the unemployment rate to 7.1%.

  • Saskatchewan added 6,600 jobs and boasts the lowest unemployment rate in Canada at 4.9%.

Wage and Hours Worked

There’s still some good news:

  • Average hourly wages increased by 3.6% year-over-year, now averaging $36.05.

  • Total hours worked rose by 0.4% in March and 1.2% compared to a year ago, hinting at improved productivity.

Self-Employment Snapshot

Self-employment grew 3.0% over the past year, reaching 2.7 million people. However, fewer self-employed individuals have access to health (43.3%), dental (36.4%), or disability (25.3%) insurance compared to traditionally employed workers.

What This Means for Employers and Job Seekers

For employers, it’s time to revisit recruitment strategies and consider how economic uncertainty might impact talent acquisition. VPWS recommends reviewing benefits offerings to stay competitive, especially with wage growth continuing.

For job seekers, especially those unemployed long-term or recently laid off, this may be a challenging period. Upskilling, networking, and accessing professional support can help you stand out.

Want help navigating hiring or job searching in this market? We’re here to support you.

Contact VP Workforce Solutions at info@vpworkforcesolutions.com or visit www.vpworkforcesolutions.com to learn more.

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