Canada’s latest jobs data points to a sluggish labour market - and the finance and insurance sector is on the wrong side of the trend.
Statistics Canada’s March labour force survey showed a net gain of 14,000 jobs and an unchanged unemployment rate of 6.7%, but beneath the headline figures, finance and insurance employers cut staff, even as other white‑collar pockets added roles.
While overall job growth was led by “other services” and professional, scientific and technical services, March saw net losses in finance, insurance, real estate and leasing. That follows a volatile few months in which Canada shed more than 100,000 positions across the economy in January and February after a hiring surge late in 2025.
The pattern also reinforced what many HR and hiring managers are seeing on the ground: expansionary hiring plans are being reined in, with more selective backfilling, slower requisition approvals and a greater focus on productivity and profitability per headcount.
In services‑heavy provinces such as British Columbia, the labour backdrop is particularly challenging. BC lost another 19,000 jobs in March – its second consecutive monthly decline – pushing the province’s unemployment rate to 6.7%, the highest level in about a decade outside the pandemic. That combination of weaker employment and high living costs is likely to weigh on demand for mortgages, credit and related insurance products, and may dampen near‑term hiring appetite in financial services hubs such as Vancouver.
The survey showed average hourly wages up 4.7% year over year in March, the fastest pace since October 2024. However, Statistics Canada noted that part of that jump reflects a shift in the composition of employment – fewer lower‑paid jobs in the mix – rather than broad‑based pay inflation. Adjusted for that effect, underlying wage growth was closer to 3.6%, broadly in line with January and February.
For insurance employers, that nuance matters. It suggests that while replacement hires and specialist roles still command competitive pay, the macro environment does not currently point to another leg higher in across‑the‑board salary inflation. With premium growth subdued and investment income improving only gradually, carriers and brokers are likely to remain cautious on fixed‑cost growth, prioritizing technical talent in underwriting, actuarial, risk and data roles over broad front‑line expansion.
At the same time, elevated but stable unemployment gives hiring managers a slightly deeper candidate pool to draw from, particularly in back‑office and support functions, even as the market for highly specialized talent remains tight.
The Bank of Canada held its policy rate at 2.25% in March and, after the latest jobs report, is widely expected to stay on hold at its April 29 meeting. Economists point to a “fits and starts” economy, the energy‑price shock from the Iran conflict and high uncertainty as reasons for the central bank’s wait‑and‑see stance.
For insurers and brokers, “higher for longer” rates are a mixed blessing. They support investment returns on fixed‑income portfolios, but they also weigh on economic growth, deal activity and credit demand – all of which feed into insurance volumes. In that environment, most Canadian carriers are likely to prioritize balance‑sheet strength, underwriting discipline and expense control over aggressive headcount growth.
With the broader labour market weak but not collapsing, and monetary policy still on hold, the outlook for insurance employment in Canada is one of gradual, targeted hiring rather than a broad upturn.
For jobseekers, the best prospects remain in roles that directly support profitability, risk management and regulatory compliance; for employers, the challenge is to invest in those capabilities without losing cost discipline as the cycle grinds on.
