Canada’s labour market outpaces U.S. as wages rise faster than inflation: report
Canada's economy avoided recession in 2025 and generated jobs at a faster per-capita pace than the United States, according to the federal government's Spring Economic Update 2026. Wage growth has outpaced inflation for more than three consecutive years, supporting continued gains in real incomes.
Canada's economy avoided recession in 2025 despite higher U.S. tariffs and global instability. The country generated jobs at a faster per-capita pace than the United States, with 3.4 jobs per 1,000 of population added since the start of 2025, compared to 1.2 per 1,000 in the U.S. The national unemployment rate declined to 6.7% as of March 2026. Wage growth has outpaced inflation for over three years, with real wages rising by an average of 1.6% per year since 2023. Canada's labour force participation rate stands at 64.9%, above the U.S. rate of 61.9%. The government expects Canadian real GDP to grow by 1.1% in 2026 and 1.9% in 2027.
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