Canada lost 18,000 jobs in April as unemployment rose to 6.9%, adding to signs of a softer labour market after a rocky start to 2026.
Canada’s economy shed 18,000 jobs in April and the unemployment rate climbed to 6.9 per cent, its highest level in six months, according to Statistics Canada data released Friday.
The decline points to continued strain in the labour market after a brief March gain of about 14,000 jobs. Canada has now lost jobs in three of the first four months of 2026, for a cumulative decline of 112,000 positions since January.
The losses were concentrated in full-time work. Full-time employment fell by 46,700 in April, partly offset by a gain of 29,000 part-time jobs. Over the first four months of the year, full-time work was down by 111,000 positions, Statistics Canada said.
The numbers were weaker than analysts had expected. Economists polled by Reuters had forecast a net gain of 15,000 jobs and an unemployment rate of 6.7 per cent.
The report adds to evidence of slack in the labour market, a concern the Bank of Canada flagged in its most recent Monetary Policy Report. The central bank has been watching indicators such as employment, hours worked and vacancies while assessing how much unused capacity remains in the economy.
Wage growth eased but remained elevated. Average hourly wages for permanent employees rose 4.8 per cent from a year earlier, down from 5.1 per cent in March. The measure is closely watched by the Bank of Canada because of its link to inflation expectations.
The participation rate edged up to 65 per cent from 64.9 per cent in March, meaning a slightly larger share of Canadians aged 15 and older were either working or looking for work. A higher participation rate alongside a higher unemployment rate suggests more people were searching for jobs without finding them.
The jobless rate rose for both core-aged workers and young people. Among workers aged 25 to 54, unemployment increased to six per cent. Youth unemployment rose to 14.3 per cent.
By sector, goods-producing industries lost 26,800 jobs in April, while services employment rose by 9,100. The goods side of the economy has been more exposed to U.S. tariffs and trade uncertainty, according to the report. Health care and social assistance, along with business and building services, posted gains.
Despite the recent weakness, employment remained 67,000 higher than in April 2025. But economists cited in the report said the early-year slide suggests job seekers may continue to face a difficult market.
“Difficult conditions facing job seekers, whether it’s youth looking to break into the market, or the unemployed trying to get back to work, linger. There’s little sign of shifting into high gear any time soon,” Indeed senior economist Brendon Bernard wrote in a note.
The next labour market readings will be watched for whether April’s weakness was part of a broader slowdown or another uneven turn in a year that has so far offered little stability for workers and employers.
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