Long-term unemployment rising
March’s rise from 6.6 to 6.7 per cent represented the Canada job market’s first unemployment increase since November 2024, when it rose from 6.5 to 6.8 per cent, though Statistics Canada noted that the national unemployment rate has remained above its pre-COVID-19 pandemic average of 6.0 per cent (from 2017 to 2019) since March 2024.
In total, there were 1.5 million unemployed Canadians in March 2025, up by 36,000 (a 2.5 per cent rise) from February and 167,000 (a 12.4 rise) year-over-year. Among them, 44.1 per cent had been laid off within the previous 12 months, 18.4 per cent had last worked in construction, 12.4 per cent had last worked in wholesale or retail trade, and 9.3 per cent had last worked in manufacturing. A further 14.3 per cent had voluntarily left their previous job, down from 17.6 per cent in March 2024.
The agency also noted that long-term unemployment has risen; the proportion of unemployed Canadians searching for work for 27 weeks or more was 18.3 per cent in March 2024 and has since risen to 23.7 per cent. Meanwhile, among the 1.5 million unemployed Canadians mentioned above, 41.5 per cent had not worked in the previous 12 months – a significant increase from March 2024, when those who had been out of work for more than 12 months represented 35.4 per cent of unemployed Canadians.
Wholesale and retail, information and culture sectors post biggest losses in March 2025
On a sector-specific basis, the Canada job market’s largest March employment losses came from the wholesale and retail trade sector, which employs nearly 3 million Canadians and lost 28,500 positions in March (a 0.9 per cent monthly loss) after gaining 51,000 in February.
In second place was the information, culture and recreation sector, which employs 835,000 Canadians and lost 20,300 positions in March (a 2.4 per cent monthly loss), followed by business, building and other support services, which employs 719,600 and lost 10,300 positions (a 1.4 per cent monthly loss).
Other industries that reported significant job losses in March 2025, according to Statistics Canada, include:
Agriculture: 9,300 jobs lost (4.1 per cent loss)
Manufacturing: 7,100 jobs lost (0.4 per cent loss)
Construction: 3,800 jobs lost (0.2 per cent loss)
Educational services: 3,500 jobs lost (0.2 per cent loss)
Accommodation and food services: 1,800 jobs lost (0.2 per cent loss)
Health care and social assistance: 600 jobs lost (statistically insignificant in a sector that employs nearly 2.9 million)
Meanwhile, employment rose 11,600 (a 1.5 per cent monthly gain) in the agency’s catchall “other services” category, which covers services outside its wholesale and retail trade; transportation and warehousing; finance, insurance, real estate, rental and leasing; professional, scientific and technical; business, building and other support; educational; health care and social assistance; information, culture and recreation; accommodation and food; and public administration services categories.
Statistics Canada also reported an employment gain of 10,100 (a 0.9 per cent monthly gain) in transportation and warehousing, which had previously lost 23,000 jobs in February.
Other industries that posted gains last month included:
Professional, scientific and technical services: 9,600 jobs added (statistically insignificant in a sector that employs nearly 2 million)
Finance, insurance, real estate, rental and leasing: 6,300 jobs added (0.4 per cent gain)
Public administration : 6,300 jobs added (0.5 per cent gain)
Natural resources: 4,400 jobs added (1.3 per cent gain)
Utilities: 4,200 jobs added (2.8 per cent gain)
