Canada’s labour market showed further signs of weakness in April as the national economy lost 18,000 jobs and the unemployment rate climbed to 6.9 per cent, the highest level seen in six months.
New figures released by Statistics Canada
suggest ongoing economic uncertainty, U.S. trade tensions and slowing business confidence are continuing to weigh heavily on the country’s workforce.
The April losses follow a modest gain of 14,000 jobs in March, but economists say the broader trend for 2026 remains concerning.
Canada Has Lost More Than 100,000 Jobs This Year
According to the latest data:
Canada has lost a cumulative 112,000 jobs since January.
Jobs declined in three of the first four months of 2026.
Full-time employment accounted for most of the losses.
In April alone:
Full-time jobs dropped by approximately 46,700 positions.
Part-time employment increased by roughly 29,000 jobs.
Economists say the numbers point to a labour market struggling to maintain momentum.
Andrew Grantham described the start to 2026 as “rocky” for Canada’s labour market.
Young Canadians Facing Toughest Conditions
The report highlights growing difficulties for younger workers trying to enter the job market.
Youth unemployment rose to 14.3 per cent in April, while unemployment among core working-age Canadians aged 25 to 54 climbed to six per cent.
Job seekers continue to face limited opportunities despite more people actively looking for work.
The labour force participation rate edged slightly higher to 65 per cent, suggesting more Canadians are searching for employment even as hiring slows.
Brendon Bernard said the difficult environment is likely to continue.
“Difficult conditions facing job seekers linger,” Bernard said, adding there is little indication the labour market will improve significantly in the near future.
Tariffs and Global Instability Impacting Economy
Analysts say sectors tied to manufacturing, exports and trade continue to feel pressure from ongoing U.S. tariff uncertainty and rising global energy costs linked to tensions in the Middle East.
The goods-producing sector — most exposed to tariffs and trade disruptions — lost approximately 26,800 jobs in April.
Meanwhile, the services sector posted a modest gain of 9,100 jobs.
Industries showing employment growth included:
Health care and social assistance
Business services
Building-related sectors
Wage Growth Slows Slightly
Average hourly wages for permanent employees rose 4.8 per cent compared to one year earlier, down slightly from 5.1 per cent growth recorded in March.
The Bank of Canada closely monitors wage growth as a key indicator of inflation pressures.
Pressure Builds on Bank of Canada
The weak employment numbers arrive as the Bank of Canada
continues balancing inflation concerns against slowing economic growth.
The central bank recently kept its key interest rate unchanged at 2.25 per cent, warning that uncertainty surrounding global trade and energy markets continues to cloud the economic outlook.
Economists say if labour market weakness persists through the summer, pressure could grow for interest rate cuts later this year to stimulate hiring and business investment.
For many Canadians — especially younger workers — the combination of rising living costs, reduced hiring and economic uncertainty is creating increasing financial strain heading deeper into 2026.