Canada Employment Research Brief

Job creation struggling for momentum. Canada’s labour market continued to weaken in April, with employment declining by 17,700 positions and bringing total job losses this year to nearly 80,000. Meanwhile, the unemployment rate rose 20 basis points to 6.9 per cent — the highest level in six months — reinforcing signs that hiring conditions are poor. Losses were concentrated in cyclical industries, including construction, transportation, and retail trade. Employment in the oil and gas sector also reversed, following a temporary boost tied to higher energy prices in March. More broadly, elevated gasoline costs, trade uncertainty, and weaker consumer confidence appear to be weighing on discretionary spending and business hiring. While the unemployment rate may improve amid muted labour force growth, hiring could soften further over the near term as economic uncertainty continues to pressure employer confidence.