Last Friday, Statistics Canada released data showing that Canada’s labour market weakened over the month of April. After a small pickup in hiring in March, the economy returned to job losses in April. This marked its third monthly decline in four months in 2026, demonstrating the impact geopolitical and trade tensions are having on Canada’s labour market. The unemployment rate is up compared to the end of 2025. Meanwhile, the US saw a second straight month of relatively robust job gains, suggesting the US labour market is stabilizing.

• Canada’s economy lost almost 18,000 jobs in April, disappointing economists who were expecting an increase in jobs, based on a Bloomberg survey. In March, the economy added 14,100 jobs.
• April’s decline was driven by a sharp fall in full-time jobs. Conversely, part-time jobs increased. The goods-producing sector shed jobs over the month, while there were job gains in the service-producing sector.
• Canada’s unemployment rate rose to 6.9% in April, which was its highest level since October 2025.
• The hourly wage rate increased by 4.8% year-over-year in April, which was down slightly from the 5.1% increase in the previous month.
• Meanwhile, the US economy added 115,000 jobs in April, which was also reported last Friday. This added to the 185,000 job gains in the previous month. The US unemployment rate held steady at 4.3% in April.

Canada’s labour market is struggling in 2026, which may not be a huge surprise given ongoing trade tensions with the US and heightened geopolitical tensions in the Middle East that is weighing on global economic activity and raising prices. Despite prices on the rise, a weak labour market may keep the Bank of Canada holding its benchmark overnight interest rate steady at its next meeting in June. In the US, the labour market has shown signs of improving in 2026, but it faces several potential challenges similar to those in Canada.

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