Canada Lost 17,700 Full-Time Jobs in April 2026 – A Situation Not Linked to the War on Iran.
On May 8, 2026, Statistics Canada released a job report indicating that the national unemployment rate rose to a six-month high of 6.9% in April, with a net loss of 17,700 jobs. Market analysts suggest that this downturn is primarily due to Canada’s labor market struggles in the wake of U.S. tariffs, which have created trade uncertainties across major industrial sectors.
Notably, the job losses in April came predominantly from full-time positions, which saw a 46,700-job reduction. This was partially offset by a gain of 29,000 jobs in the part-time sector.
This decline in employment continues a troubling trend observed from January to April 2026, during which approximately 111,000 full-time jobs were lost.
The goods-producing sector, which is most vulnerable to U.S. tariffs, lost 26,800 jobs in April. In contrast, the services sector, where four out of every five workers are employed, reported an increase of 9,100 jobs.
Rising Job Seekers: StatsCan Report.
According to Statistics Canada, more unemployed Canadians are actively looking for jobs. Average hourly wages for permanent employees, a key indicator closely monitored by the Bank of Canada (BoC) to assess inflation expectations, rose by 4.8% year over year, down from 5.1% in March.
The participation rate—the percentage of the population aged 15 and over that is economically active—increased to 65% in April, up from 64.9% the previous month. This higher participation rate, combined with a rising unemployment rate, indicates that more people are searching for work in the economy.
Unemployment rates among core-aged workers (25 to 54 years old) and youth also increased, reaching 6% and 14.3%, respectively.
Andrew Grantham, a senior economist at CIBC Capital Markets, noted that the rising slack in the labor market should limit the potential for an oil price shock to trigger wider inflationary pressures.
In a client communication, TD senior economist Andrew Hencic noted that, given the weak jobs report and limited capacity for companies to pass on inflation-related price increases to consumers, he anticipates the BoC will maintain interest rates for the remainder of the year, especially if oil prices decline soon.
Earlier this week, Fatih Birol, head of the International Energy Agency, cautioned that while Canada has so far avoided the full impact of price shocks, the situation could change dramatically if the ongoing crisis in the Strait leads to higher prices, as seen in other parts of the world.
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