Canada's Employment Decline: A Tariff-Driven Crisis

Canada experienced its first job decline in over three years in March, losing a net 32,600 jobs due to full-time work reductions. The unemployment rate increased to 6.7%. Tariffs, especially from the U.S., have caused companies to pause hiring and consider layoffs, impacting Canada's economy and job market.

Canada is facing a labor market setback as employment figures for March show a net loss of 32,600 jobs, marking the country's first job decline in over three years. Statistics Canada reports that this is largely due to a significant drop in full-time positions, with the unemployment rate climbing to 6.7% from 6.6% in February.

Economists highlight that the uncertainty surrounding tariffs, including those imposed by U.S. President Donald Trump on Canadian steel and aluminum, has contributed to companies delaying hiring and investments. This economic tension is reflected in the Canadian dollar's decline and a potential interest rate cut by the Bank of Canada.

The aftermath of these tariffs, combined with global retaliatory measures, could lead to further economic downturns, with predictions of unemployment rates potentially peaking above 7%. Repercussions are already noticeable, with increased job insecurity influencing Canadians' financial behavior and spending.

(With inputs from agencies.)