Great news this morning: thanks to the hard work of Canadians, 41,000 new jobs were created last month! Double the market expectations.
— Chrystia Freeland (@cafreeland) March 8, 2024
Public sector hiring is driving the labour market in Canada
Employment gains in the public sector more than offset losses among Canadian businesses last month, highlighting a labour market that has been propped up by government hiring.
In February, public-sector roles rose by 18,800 positions, while the private sector lost 16,400 jobs, Statistics Canada data showed. Over the past year, employment in the public sector has grown 4.7 per cent, versus 1.2 per cent in private industry.
“If you look at how the private sector’s trending, it’s sharply decelerating,” Beata Caranci, chief economist at Toronto-Dominion Bank, said in a phone interview. “That’s tied to the interest rate cycle, not the government hiring that’s tied to specific funds and social policy.”
