Canada’s labour market weakened in April as the economy shed 17,700 jobs and the national unemployment rate climbed to 6.9 per cent — the highest level recorded in six months, according to new data released by Statistics Canada. The disappointing figures follow a modest gain of 14,000 jobs in March and reflect continued economic pressure linked to U.S. tariffs, trade uncertainty, and global instability.
The losses were driven entirely by a sharp decline in full-time employment, which fell by 46,700 positions during the month. Meanwhile, part-time employment rose by 29,000 jobs, partially offsetting the overall decline. Statistics Canada also noted that between January and April 2026, Canada lost a total of 111,000 full-time jobs, pointing to broader weakness in the labour market.
Average hourly wages for permanent employees rose 4.8 per cent compared to a year ago, slightly slower than the 5.1 per cent growth recorded in March. Economists and the Bank of Canada closely monitor wage growth as an indicator of inflation pressures and economic stability.
The labour force participation rate — measuring Canadians aged 15 and older who are actively working or seeking employment — edged up to 65 per cent in April from 64.9 per cent the previous month. Analysts say the simultaneous rise in both participation and unemployment suggests more Canadians are looking for work but struggling to find jobs in a slowing economy.
Youth and core-aged workers were among the hardest hit. The unemployment rate for Canadians aged 15 to 24 rose to 14.3 per cent, while unemployment among core-aged workers between 25 and 54 climbed to six per cent. Recent months have seen growing concern over employment challenges facing younger Canadians entering the workforce.
The goods-producing sector, which is particularly vulnerable to U.S. tariffs and global trade disruptions, lost 26,800 jobs in April. In contrast, the services sector added 9,100 positions. Economists had expected a gain of 15,000 jobs and forecast unemployment to remain at 6.7 per cent, making the latest figures significantly weaker than anticipated.
The Bank of Canada recently warned that labour market indicators — including hours worked, job vacancies, and employment rates — continue to point toward growing economic slack. Ongoing uncertainty surrounding the future of North American trade relations, combined with rising global energy costs linked to tensions involving Iran, has continued to weigh heavily on Canada’s economic outlook.
