Canada’s Unemployment Rate Rises to 6.1% in March Amid Economic Challenges

Canada’s unemployment rate rose to 6.1 percent in March as more people searched for jobs in an economy struggling with high-interest rates.

Statistics Canada reported that employment declined in sectors like hospitality, food, wholesale and retail trade, and professional services.

However, there were job gains in healthcare and social assistance, with the average hourly wage increasing by 5.1 percent compared to last year.

The employment rate, representing the proportion of the population employed, fell for the sixth consecutive month to 61.4 percent due to population growth.

This increase in unemployment is attributed to businesses facing high borrowing costs and continued population growth contributing to the labor supply. Overall, the unemployment rate rose by one percentage point compared to the previous year.