Canada’s job market slowed down in April, with the economy losing 17,700 jobs and the unemployment rate rising to 6.9%, according to Statistics Canada.
Economists were actually expecting job growth, so the weaker numbers came as a surprise.
📉 What Happened?
While Canada still has more jobs overall compared to last year, the country has now lost around 112,000 jobs since January 2026.
Most of those losses were in full-time positions, making this the biggest four-month decline in employment since early 2021.
At the same time, more Canadians started searching for work in April. That increased the size of the labour force, but also pushed the unemployment rate higher.
🏗️ Which Industries Were Hit the Hardest?
The biggest job losses came from:
- Information, culture, and recreation
- Construction
- Other services (like repair, maintenance, and personal services)
Some industries still added jobs, including:
- Health care and social assistance 🏥
- Accommodation and food services 🍽️
- Business and building support services
Health care continued to be one of the strongest sectors, adding 119,000 jobs over the past year.
👨🎓 Youth Unemployment Continues to Rise
Young workers continue to face challenges in the job market.
The unemployment rate for youth increased to 14.3%, which remains much higher than pre-pandemic levels.
Core-aged men also saw unemployment rise slightly to 6.1%.
💰 Wages Are Still Growing
Despite the weaker job market, wages are still increasing.
Average hourly wages for full-time employees rose 4.8% year-over-year, slightly lower than March’s 5.1% increase.
However, wage growth hasn’t been equal across income levels:
- Lower-income workers saw wages grow by only 3.5%
- Higher-income earners saw wage growth closer to 5%
🌍 What’s Causing the Slowdown?
A few major global factors are putting pressure on Canada’s economy right now:
U.S. Tariffs
Businesses are still dealing with uncertainty surrounding American trade tariffs, which can impact exports and investment.
🛢️ Rising Oil Prices & Global Tensions
The ongoing war in Iran has pushed oil prices higher, increasing inflation concerns and creating more uncertainty globally.
🏦 What This Means for Interest Rates
The latest jobs report adds more pressure to the Bank of Canada’s difficult balancing act.
Right now, the Bank is trying to manage:
- A slowing economy 📉
- Rising inflation risks from higher oil prices ⛽
Because of that, many economists believe the Bank of Canada may keep rates unchanged for longer while they wait to see which issue becomes the bigger problem.
If oil prices continue rising, some experts believe rate hikes could still return later this year.
📊 Market Reaction
After the report:
- The Canadian dollar weakened slightly 💵
- Bond yields fell
- Markets reduced expectations for future rate hikes
This suggests investors believe the Bank of Canada may stay cautious in the months ahead.
Canada’s labour market is showing signs of slowing down, especially in full-time employment. While wages are still growing, rising unemployment and global uncertainty are making the economic outlook more complicated.
For borrowers and homeowners, this likely means the Bank of Canada will remain cautious with future rate decisions as they continue monitoring inflation, oil prices, and overall economic growth.
🤔 Do we recommend locking in your variable rate mortgage at this time?
☐ Yes
✅ No
☐ Maybe
Locking in now means committing to today’s higher rates while potentially missing better opportunities. With the Bank of Canada still navigating a slowing economy, staying variable keeps you flexible if rates improve.
That said, locking in should depend on your comfort level, timeline, and overall strategy, so reach out to us if you have questions and we’ll walk through it together.