Canadian economy lost 33,000 jobs in March, biggest loss since 2022

The economy shed 33,000 jobs in March, the biggest loss since January 2022, while the unemployment rate ticked higher, Statistics Canada said Friday.

The agency said the unemployment rate for March rose to 6.7 per cent compared with 6.6 per cent in February.

The hit came amid increased uncertainty caused by U.S. tariffs that have threatened economic growth.

The job losses reversed some of the gains made at the end of last year and into January.

Annual inflation falls to 1.6% in September, raises odds of 50-basis-point rate cut

The chances of a half-percentage point interest rate cut by the Bank of Canada became more likely Tuesday after Statistics Canada reported annual inflation fell to 1.6 per cent in September.

Economist Tu Nguyen of accounting and consultancy firm RSM Canada said she had expected the inflation rate to remain close to the central bank's two per cent target, where it was in August, for a few more months.

"This is one of the instances where I'm happy to be wrong," she said.