Canada Adds Jobs in April, But Unemployment Rate Rises to 6.9%

Canada’s economy added 7,400 jobs in April, according to new data released by Statistics Canada on Friday, as per Bloomberg.

However, the modest employment gains were not enough to keep pace with population growth, pushing the national unemployment rate up to 6.9 percent.

The rise marks the second consecutive monthly increase in the jobless rate and matches a recent high last seen in November 2024.

The data suggests that while job creation continues, it is lagging behind the growth of Canada’s working-age population — a sign that the labour market may be softening.

April’s job gains were bolstered by a surge in temporary hiring tied to last month’s federal election. However, that increase was largely offset by a sharp decline in the manufacturing sector, which shed 31,000 jobs during the month. Analysts pointed to the impact of newly imposed US tariffs as a key factor in the sector’s decline.

Economists had expected a smaller employment gain of 2,500 jobs and had forecast the unemployment rate to rise slightly to 6.8 percent. The actual numbers exceeded job expectations but showed a sharper increase in joblessness.