Canada’s labor market remains weak as U.S. tariffs and volatile stock markets batter the economy.
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Canada’s economy in March posted modest job growth of 14,000 net new positions following two consecutive months of job losses to start the year. Statistics Canada reports that employers added 14,000 jobs in March, in line with economists’ consensus expectations.
Consequently, the unemployment rate in Canada remained unchanged at 6.7%. Statistics Canada said there was little change in employment across age groups, or among full- and part-time work, and in the private and public sectors.
A Slight Improvement for Canada
Job growth during March was led by a category the agency calls “other services” that includes repair and maintenance work. The 15,000 jobs added there offset a similar-sized decline in February. The professional, scientific and technical services sector, the natural resources industry, and tariff-sensitive manufacturing all posted very weak job gains in March.
Average hourly wages across the country rose 4.7% year-over-year in March, an increase from 3.9% in February and the fastest pace since October 2024. The modest job gains in March follow an up-and-down stretch for the labor market, which continues to struggle under the weight of U.S. tariffs.
The weak economic conditions and market volatility are dragging on leading Canadian stocks such as Shopify (SHOP), Lululemon Athletica (LULU), and Roots (TSE:ROOT).
Is ROOT Stock a Buy?
Not enough analysts offer ratings and price targets on ROOT stock. So instead, we’ll look at the three-month share price performance. As one can see in the chart below, Root’s stock has gained 26% in the last 12 weeks.
