Canada's labour market showed signs of weakness in April, with the economy losing 18,000 jobs and the unemployment rate climbing to 6.9%, the highest it has been in six months. Statistics Canada released the data on Friday, revealing a concerning trend after a period of relative stability. The last time Canada saw this many jobs lost in a four-month window was during the pandemic. In non-pandemic times, the last time job losses were this high was 2009.
The job losses were concentrated in full-time positions, which saw a decrease of 46,700, only partially offset by a gain of 29,000 part-time jobs. This shift towards part-time work could indicate a broader trend of precarious employment and job insecurity for Canadians. The goods-producing sector, particularly vulnerable to U. S. tariffs, experienced a significant drop of 26,800 jobs. Meanwhile, the services sector, which employs the majority of Canadians, saw a modest gain of 9,100 jobs.
The Bank of Canada's recent Monetary Policy Report indicated "slack" in the labour market, with underutilized capacity despite modest layoffs. The rising unemployment rate, coupled with an increased participation rate (the percentage of Canadians over 15 who are employed or seeking work), suggests more Canadians are actively looking for jobs but unable to find them. This is especially true for younger Canadians, with unemployment among those aged 25-54 and youth rising to 6% and 14.3% respectively.
Economists had anticipated job gains in April, making the actual losses a surprise and prompting concern about the Canadian economy's trajectory. CIBC economist Andrew Grantham noted that Canada has experienced job losses in three out of the first four months of 2026, signalling a difficult start to the year for the labour market. While the average hourly wages of permanent employees grew by 4.8% year-over-year, this was slightly less than the 5.1% growth seen in March. The Canadian dollar also reacted to the news, trading down 0.6% to C$1.3673 against the U. S. dollar.
