Canada’s labour market showed renewed signs of softness in April, with the jobless rate climbing to 6.9%, a six-month high, according to Statistics Canada. The agency’s release also showed the economy recorded a net loss of 17,700 jobs in March, underscoring continued weakness in employment even as some portion of the workforce shifted into part-time roles.
The reported decline in employment was entirely concentrated in full-time positions, which decreased by a net 46,700 people in the month. That fall was partially counterbalanced by an increase of 29,000 jobs in the part-time sector. Statistics Canada noted that, over the first four months of 2026, the net decline in employment was concentrated in full-time work, which fell by 111,000 between January and April.
Wage dynamics showed moderate easing. Average hourly wages of permanent employees, a metric closely observed by the Bank of Canada to monitor inflation expectations, rose 4.8% compared with the same month a year earlier, down from 5.1% in March.
The participation rate edged up to 65.0% in April from 64.9% in the prior month. With both participation and unemployment higher, Statistics Canada’s figures indicate more people were actively looking for work during the month.
Age-group breakdowns showed the unemployment rate rose for core-age workers and for youth. The jobless rate among 25- to 54-year-olds increased to 6.0%, while the unemployment rate for youth climbed to 14.3%.
Industry-level data highlighted a divergence between goods-producing and services sectors. Employment in the goods-producing sector, which the report identified as the most exposed to U.S. tariffs, fell by 26,800 jobs in April. By contrast, the services sector — where four out of every five employed Canadians work — added 9,100 positions.
The Bank of Canada has previously cited several labour indicators, including the employment rate, hours worked and job vacancies, as suggesting slack or underutilized capacity in the labour market, even as layoffs remain modest. The Statistics Canada release and the Bank’s assessment both point to continued fragility in employment measures.
Broader sources of economic uncertainty were also noted in the data commentary. The ongoing uncertainty around the future of the North American free trade deal and the additional price pressures from the Iran war were identified as factors layering over the longer-running impact of U.S. tariffs on the Canadian economy.
Summary
Statistics Canada reported a rise in the unemployment rate to 6.9% in April alongside a net loss of 17,700 jobs in March. The decline was driven entirely by full-time job losses, while part-time work expanded. Wages for permanent employees grew at a slower pace year-over-year, participation rose slightly, and employment losses were concentrated in goods-producing industries while services showed modest gains.