07:11 AM EDT, 05/30/2025 (MT Newswires) -- National Bank of Canada stated that there are two key surveys from Statistics Canada that monitor the country's labor market: the Labour Force Survey (LFS), which is household-based, and the Survey of Employment, Payrolls and Hours (SEPH), which is business-based.

While the LFS is timelier and widely followed, economists often turn to SEPH to validate or challenge emerging labor market trends, noted the bank.

Those hoping for reassurance were likely disappointed by Thursday's SEPH release, which confirmed the weakness already observed in the LFS, sai National Bank.

March data revealed a third consecutive monthly decline in private sector employment, with a cumulative net loss of 78,000 jobs, a magnitude only seen during recessions. Over a similar period-from January to April, LFS reported a comparable pullback of 70,000 jobs. Both surveys point to Ontario as the epicenter of layoffs, added the bank.

What stands out most in recent months is the breadth of the downturn: both surveys indicate that 71% of private sectors has contracted over the past three months.

Such a broad-based diffusion of weakness has historically occurred only during recessions, according to National Bank.