Canada’s unemployment rate rose to 6.9 per cent in April, marking a 0.2 percentage point increase from March and reaching levels not seen since early 2017 outside of the pandemic period.
The latest Labour Force Survey from Statistics Canada shows employment holding relatively steady with a modest gain of 7,400 jobs, while the employment rate dipped 0.1 percentage points to 60.8 per cent.
The manufacturing sector took the hardest hit, shedding 31,000 jobs (-1.6 per cent) in April, with Ontario accounting for the largest provincial decline as uncertainty around U.S. tariffs continues to affect the industry.
Employment among core-aged women (25-54) fell by 60,000 (-0.9 per cent) in April, concentrated in part-time work, while employment increased for core-aged men (+24,000) and workers aged 55 and older (+35,000).
Public sector grows, private sector stalls
Public administration employment rose by 37,000 (+3.0 per cent), largely attributable to temporary hiring for the recent federal election, with advance polling occurring during the survey reference week of April 13-19.
The finance, insurance, real estate, rental and leasing sector continued its upward trend with 24,000 new positions (+1.6 per cent), extending gains that began in October 2024.
Meanwhile, wholesale and retail trade employment fell by 27,000 (-0.9 per cent), the second consecutive monthly decline for the sector.
Provincial picture shows mixed results
Ontario’s employment dropped by 35,000 (-0.4 per cent) in April, pushing the provincial unemployment rate up to 7.8 per cent. The Windsor census metropolitan area, heavily dependent on automotive manufacturing, saw its unemployment rate jump to 10.7 per cent.
Quebec recorded its first significant employment increase since November 2024, adding 18,000 jobs (+0.4 per cent). However, the provincial unemployment rate still climbed to 6.0 per cent as more people entered the job market seeking work.
Alberta gained 15,000 jobs (+0.6 per cent) in April, offsetting its March decline, though the unemployment rate remained unchanged at 7.1 per cent.
Job seekers face tougher market
The data reveals growing challenges for job seekers, with 61 per cent of those unemployed in March remaining without work in April—higher than the 57.3 per cent recorded during the same period last year.
Average hourly wages increased by 3.4 per cent year-over-year to $36.13, slightly down from the 3.6 per cent growth recorded in March.
Despite an increase in the labour force participation rate to 65.3 per cent in April, this figure remains 0.4 percentage points lower than a year ago, suggesting continued structural challenges in the labour market.
