Canada’s job market experienced a setback in April as the unemployment rate climbed to 6.9%, marking a six-month high with a loss of 18,000 jobs, according to Statistics Canada. Despite adding 67,000 jobs since April 2025, Canada has faced a net loss of 112,000 jobs since the beginning of this year.
The decline in employment has been particularly notable in full-time positions, which saw a decrease of 46,700 jobs, partially offset by a gain of 29,000 part-time jobs. Statistics Canada reported that the overall drop in employment in the first four months of 2026 was predominantly in full-time work, with a decrease of 111,000 jobs between January and April.
Average hourly wages for permanent employees increased by 4.8% compared to the previous year, slightly lower than the 5.1% growth in March. The participation rate in the labor force, which measures the economically active population over the age of 15, rose to 65% in April, indicating an increase in job seekers.
Unemployment rates among core-aged workers (25-54 years old) and youth (15-24 years old) rose to 6% and 14.3%, respectively. The goods-producing sector, heavily affected by U.S. tariffs, lost 26,800 jobs in April, while the services sector, where the majority of Canadians work, gained 9,100 jobs.
Despite analysts predicting a net gain of 15,000 jobs and an unemployment rate of 6.7%, the actual figures reflected a different reality. The Bank of Canada highlighted indicators such as the employment rate, hours worked, and job vacancies as signs of underutilized capacity in the labor market.
Ongoing uncertainties surrounding trade agreements and geopolitical tensions continue to impact Canada’s economy. Economists foresee challenging times ahead in the job market for Canadians, with Brendon Bernard, a senior economist, expressing concerns about the persisting tough conditions for job seekers in 2026.