Canada’s labor market weakened notably in April as employment unexpectedly declined and the unemployment rate climbed to its highest level in months. Total employment fell by -17.7k during the month, sharply missing expectations for a modest gain of 5.1k. The weakness was concentrated in full-time positions, which dropped by -47k, while part-time employment rose by 29k.
Unemployment rate increased from 6.7% to 6.9%, above market expectations, while employment rate slipped to 60.5%. At the same time, participation rate edged higher to 65.0%, suggesting more people entered the labor force despite deteriorating hiring conditions.
Wage growth remained relatively elevated but showed signs of gradual moderation. Average hourly wages rose 4.5% yoy in April, slowing slightly from March’s 4.7% increase.
| Indicator | Previous | Latest | Expectation |
|---|---|---|---|
| Employment Change | +14.1K | -17.7k | +5.1k |
| Unemployment Rate | 6.7% | 6.9% | 6.7% |
| Employment Rate | 60.6% | 60.5% | — |
| Participation Rate | 64.9% | 65.0% | — |
