Canada's economy dropped 17,700 jobs in April as unemployment rose to six-month high

Canada’s labour market weakened in April 2026, shedding 17,700 jobs as the unemployment rate climbed to 6.9%, the highest in six months, according to Statistics Canada data. The decline was entirely due to full-time positions, which dropped by 46,700, while part-time roles increased by 29,000. Over the first four months of the year, full-time employment fell by 111,000, signaling persistent challenges in the job market. The participation rate rose slightly to 65% from 64.9%, reflecting more people actively seeking work despite the higher unemployment. Youth unemployment surged to 14.3%, while the core-aged workforce (25–54) saw a 6% jobless rate. The goods-producing sector, heavily exposed to U.S. tariffs, lost 26,800 jobs, contrasting with a 9,100 gain in the services sector, where four out of five Canadians work. Economists, including CIBC’s Andrew Grantham, noted the losses marked the third decline in four months, underscoring a shaky economic start to 2026. Analysts had forecasted a 15,000-job gain and a 6.7% unemployment rate, missing expectations. The Bank of Canada’s April report highlighted labour market slack, citing weak job vacancies and hours worked amid modest layoffs. Trade tensions remain a key factor, with U.S. tariffs and uncertainty over the North American free trade deal exacerbating economic pressures. Rising costs from the Iran war have further strained businesses, particularly in export-dependent industries. Average hourly wages for permanent employees grew 4.8% year-over-year, down from 5.1% in March, offering some relief on inflation concerns.