Canada’s job market faced challenges in April as the unemployment rate climbed to 6.9%, marking a six-month high with 18,000 job losses, based on Statistics Canada data released on Friday. Despite gaining 67,000 jobs since April 2025, the country experienced a net loss of 112,000 jobs since the beginning of this year.
According to CIBC economist Andrew Grantham, Canada saw job losses in three of the four months in 2026, signaling a turbulent start for the labor market this year. The decline primarily affected full-time positions, with a decrease of 46,700 jobs, partially offset by a rise of 29,000 part-time jobs.
StatsCan reported that the overall employment drop in the first four months of 2026 was predominantly in full-time roles, which decreased by 111,000 between January and April. The average hourly wages for permanent employees increased by 4.8% year-over-year, slightly lower than the 5.1% growth in March, a metric closely monitored by the Bank of Canada to assess inflation expectations.
The participation rate, which measures the economically active portion of the population over 15 years old, inched up to 65% in April from 64.9% in the previous month, indicating more individuals actively seeking employment.
Unemployment rates among core-aged workers (25-54 years old) and youth (15-24 years old) rose to six percent and 14.3%, respectively. The goods-producing sector, particularly susceptible to U.S. tariffs, saw a decline of 26,800 jobs in April, while the services sector, employing four out of five Canadians, added 9,100 jobs.
On a positive note, the health-care, social assistance, and business sectors all saw job gains in April. Analysts predicted a net job increase of 15,000 and an unemployment rate of 6.7%, close to the actual figures. The Bank of Canada highlighted signs of underutilized labor market capacity in its recent Monetary Policy Report, despite modest layoffs.
The uncertainties surrounding the future of the North American free trade deal and the ripple effects of increased prices due to global events have compounded the impact of U.S. tariffs on the Canadian economy for more than a year. Brendon Bernard, a senior economist in Canada, warned of continued tough times in the job market in 2026, citing subdued economic growth and persistent challenges for job seekers.
Overall, the data indicates ongoing struggles in the Canadian labor market, with little immediate respite expected in the near future.