Canada’s job market faced challenges as the country’s unemployment rate reached 6.9 percent in April, the highest in six months, with a loss of 18,000 jobs, according to recent data from Statistics Canada. Despite an increase of 67,000 jobs since April 2025, Canada experienced a cumulative loss of 112,000 jobs since the beginning of this year.
Economist Andrew Grantham from CIBC noted that Canada has seen job losses in three of the four months of 2026, signaling a rocky start for the labor market. The decline primarily affected full-time positions, which decreased by 46,700, partially offset by a gain of 29,000 part-time jobs.
StatsCan reported that the overall drop in employment from January to April was concentrated in full-time work, decreasing by 111,000 jobs. Average hourly wages for permanent employees increased by 4.8 percent year-over-year in April, slightly lower than the 5.1 percent growth in March.
The participation rate, which measures the economically active population over 15 years old, rose to 65 percent in April from 64.9 percent in the previous month. A higher participation rate alongside an increased unemployment rate indicates more individuals actively seeking employment.
Unemployment rates among the core-aged workforce (25 to 54 years old) and youth (15 to 24 years old) rose to six percent and 14.3 percent, respectively. The goods-producing sector, heavily impacted by U.S. tariffs, lost 26,800 jobs in April, while the services sector, employing four out of five Canadians, gained 9,100 jobs.
Despite analysts’ predictions of a net gain of 15,000 jobs and an unemployment rate of 6.7 percent, the actual data reflected a different scenario. The Bank of Canada highlighted indicators suggesting underutilized capacity in the labor market, citing modest layoffs.
The ongoing uncertainties surrounding the North American free trade deal and the economic impacts of rising prices due to the Iran conflict have compounded the effects of U.S. tariffs on Canada’s economy. Economists foresee continued challenges in the job market for the remainder of 2026, with little indication of rapid improvement.