Canada’s labor market posted a modest gain of 7.4k jobs in April, slightly above expectations of 4.1k, following a sharp loss of -33k positions in March and a flat February. While the headline number suggests some stabilization, broader labor indicators point to underlying weakness.
Unemployment rate rose from 6.7% to 6.9%, above expectations, and is now back at its November 2024 level, the highest since January 2017 excluding the pandemic years.
The employment rate slipped another 0.1 percentage points to 60.8%, matching a recent low seen in October 2024.
Wage growth also showed signs of easing, with average hourly earnings increasing 3.4% yoy, down from 3.6% yoy in March. Meanwhile, total hours worked rose by 0.4% mom and 0.9% yoy.
