Canada’s unemployment rate unexpectedly rose to 6.9% in April 2026, according to Statistics Canada data released on Friday. The reading came in higher than the 6.8% consensus forecast and signals a further softening of the labor market.
The economy added only 12,000 net new jobs during the month, well below the 25,000 monthly average seen in late 2025. Sectors such as manufacturing, construction, and retail trade shed jobs, while modest gains were concentrated in healthcare, public administration, and professional services. The underemployment rate climbed to 18.4%, its highest since early 2024.
Youth unemployment (ages 15–24) jumped to 14.2%, and the jobless rate among recent immigrants reached 11.5%, nearly double that of Canadian-born workers. Regional disparities persisted, with Alberta (7.8%) and Saskatchewan (7.5%) posting the highest rates, while Quebec held steady at 6.2%.
The weak data intensifies pressure on the Bank of Canada to ease monetary policy further. The central bank has already cut its benchmark rate twice this year, bringing it to 4.25%. Market pricing now implies a 65% probability of a 25‑basis‑point cut at the June meeting, up from 50% before the release. The Canadian dollar weakened slightly on the news.
Wage growth also slowed to 3.8% year‑over‑year, and when adjusted for inflation, real wage gains have nearly stalled, squeezing household purchasing power and adding to consumer caution.
