Based on coverage from CBC, Reuters, The Globe and Mail, Toronto Sun, and Insauga.
Canada’s job market took a step back in April, with the unemployment rate rising to 6.9 per cent, the highest in six months. Statistics Canada’s labour force survey also showed the economy lost roughly 18,000 jobs in the month, a surprise compared with economists’ expectations for job growth.
A big reason the jobless rate climbed: more people were looking for work. StatsCan said the participation rate edged up to 65.0 per cent from 64.9 per cent in March, meaning more Canadians were in the labour force, whether employed or actively job-hunting.
Canada unemployment rate rises to 6.9%
Several outlets describe the same overall picture but differ slightly on the job-loss figure. Reuters reports a net loss of 17,700 jobs, while another summary of the StatsCan release puts the decline at 18,000.
This recent decline in job numbers contrasts with March's data, where the economy saw a gain of 14,000 jobs and an unchanged unemployment rate of 6.7%, as detailed in Canada Adds 14,000 Jobs in March, Unemployment Rate Steady at 6.7%. Economists polled by Reuters had expected about 15,000 jobs to be added and the unemployment rate to hold at 6.7 per cent, roughly matching March, when employment rose by about 14,000 and the unemployment rate stayed at 6.7 per cent.
Economists polled by Reuters had expected about 15,000 jobs to be added and the unemployment rate to hold at 6.7 per cent, roughly matching March, when employment rose by about 14,000 and the unemployment rate stayed at 6.7 per cent.
Full-time job losses drive April decline
The weakness is heavily concentrated in full-time work. Reuters says full-time employment fell by 46,700 in April, while part-time employment rose by 29,000.
Over the first four months of 2026, StatsCan data cited by Reuters suggests the net decline has also been mainly a full-time story: full-time work fell by 111,000 from January to April. Another report pegs the total jobs lost since January at 112,000, with losses “mostly in the manufacturing and wholesale sectors.”
Ontario gains jobs while Quebec drops
The provincial split was sharp in April.
- Ontario recorded the biggest increase, adding 42,000 jobs (up 0.5 per cent). One report says much of the gain was in health care and social assistance. - Quebec moved the other way, losing 43,000 jobs (down 0.9 per cent), with losses tied to wholesale and retail trade in one account. - Newfoundland and Labrador also saw a notable drop, down 5,200 jobs (2.1 per cent).
Youth and core-age unemployment increases
StatsCan’s breakdown shows the unemployment rate rose across key groups: - Youth (15 to 24): up to 14.3 per cent. One report notes youth unemployment remains well above the pre-pandemic average of 10.8 per cent. - Core-age (25 to 54): Reuters puts this at 6.0 per cent, while another report specifies men aged 25 to 54 at 6.1 per cent.
Tariffs, trade uncertainty, and oil prices loom
The sector details point to where the pressure is landing. Reuters says goods-producing industries shed 26,800 jobs in April, a vulnerable area given exposure to U.S. tariffs. Services industries added 9,100 jobs, and that matters because services employ about four out of five workers in Canada.
Multiple reports also tie the choppy labour market to bigger uncertainties: U.S. tariffs and trade policy questions, uncertainty around the future of the North American free trade deal, and higher oil prices linked to the Iran war pushing up gasoline costs.
On wages, the numbers vary by report. Reuters says average hourly wages for permanent employees rose 4.8 per cent year-over-year (down from 5.1 per cent in March), while another account of the StatsCan release says wages were up 4.5 per cent.
All of this lands as the Bank of Canada holds its policy rate at 2.25 per cent and watches for “slack” in the labour market, with its recent reporting pointing to softer indicators like the employment rate, hours worked, and job vacancies, even as layoffs remain modest. Money markets, according to Reuters, are pricing in a single 25-basis-point rate hike in October.
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