Canada’s job market faced challenges in April as the unemployment rate surged to a six-month peak of 6.9%, with 18,000 jobs lost, according to recent data from Statistics Canada. The economy has added 67,000 jobs since April 2025, but has experienced a net loss of 112,000 jobs since the beginning of this year.
CIBC economist Andrew Grantham noted that Canada saw job losses in three of the four months in 2026, signaling a turbulent start to the year for the labor market. The decline was primarily in full-time positions, which decreased by 46,700, partially offset by a gain of 29,000 part-time jobs.
StatsCan reported that the overall decline in employment during the first four months of 2026 was mainly in full-time work, plummeting by 111,000 from January to April. Average hourly wages for permanent employees grew by 4.8% year-over-year, slightly lower than the 5.1% growth in March.
The participation rate in the labor force slightly increased to 65% in April, indicating more individuals actively seeking employment. Unemployment rates for core-aged workers (25-54 years old) and youth rose to six percent and 14.3%, respectively.
The goods-producing sector, heavily affected by U.S. tariffs, saw a loss of 26,800 jobs in April, while the services sector, employing four out of five Canadians, gained 9,100 jobs. Additionally, the health-care, social assistance, and business sectors experienced job growth.
Analysts had predicted a net gain of 15,000 jobs and an unemployment rate of 6.7%, closely aligning with March’s figures. The Bank of Canada highlighted indicators suggesting underutilized labor market capacity, despite modest layoff rates.
Economic uncertainties, including the future of the North American trade deal and the ripple effects of increased prices due to the Iran conflict, have compounded the impacts of U.S. tariffs. Economists anticipate ongoing challenges in the job market, with Brendon Bernard forecasting continued tough times for job seekers in 2026.
