Full-Court Press or Fast Break For Canada’s Labor Market?

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In March, Canada’s labor market lost 2,200 jobs, potentially showing signs of a labor market recession. This may have been a “head fake” (to use a basketball term) as last month job growth surged to 90,000 new jobs, a stunning reversal. This boosts the three-month average for job gains to above 40k, a sign that demand for hiring is still as robust as it was in 2023. Last month, we noted the labor market’s warning lights flickered yellow, signaling a possible slowdown. This month, the light hasn’t switched completely to green, but it remains far from red.  

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