Canada’s unemployment rate rose to 6.7% in March, Statistics Canada reported Friday, as the economy lost 33,000 jobs, marking the largest monthly decline in more than three years.
Paraguay's unemployment rate is around 6.8% — World Bank/ILO data from — although its economy is different from Canada.
The increase from February’s 6.6% signals growing pressure on the labour market amid economic uncertainty. Analysts point to several factors driving the uptick. High interest rates, maintained by the Bank of Canada to curb inflation, have slowed consumer spending and business investment, leading to reduced hiring.
Sectors like retail and construction saw significant job losses, with employers citing weaker demand. Additionally, an influx of new workers — fuelled by record immigration levels — has outpaced job creation, pushing the unemployment rate higher.
“The steady build-up of slack in the Canadian economy and specifically in the labour market continues to weigh on growth,” said Doug Porter, chief economist at BMO Capital Markets, in a note to clients published in the Financial Post.
The data, released April 4, reflects a challenging start to the year, with the job drop being the steepest since January 2022.
Total employment now sits at just over 20.4 million, with full-time positions bearing the brunt of the losses.
Despite the grim numbers, wage growth held steady at 4.9% annually, offering some relief to workers.
Canada's stagnant economy in 2025 is also influenced by declining business investment, particularly in machinery and equipment. Additionally, structural challenges like interprovincial trade barriers and regulatory burdens stifle productivity, while government policies fail to address these issues effectively, leading to stagnant per-capita GDP growth.
