Canada's Employment Drop Sparks Economic Concerns Amid Trade Tensions

Canada's employment fell by 32,600 in March, marking the first decrease in over two years, with unemployment edging up amid job market uncertainties due to tariffs. Trade tensions, spearheaded by U.S. tariff impositions, are causing reduced investments and layoffs, affecting job security and spending habits.

Data released on Friday showed a decline in Canada's employment figures for March, with a net loss of 32,600 jobs, according to Statistics Canada. This marks the first drop in employment in more than two years, leading to a slight increase in the unemployment rate.

The downturn came after a period of job expansion, as Canada added 211,000 jobs from November to January. However, the growing economic uncertainty surrounding tariffs, particularly the U.S.'s 25% tariff on Canadian steel and aluminum, is affecting hiring decisions across sectors.

Economists, who had predicted a weaker job market, anticipate further job losses due to the recent imposition of reciprocal tariffs. These trade tensions have heightened concerns about job security, as further layoffs loom, particularly in construction and trade sectors.

(With inputs from agencies.)