Unemployment rate rises to 6.9%, highest since 2017
Employment rate in Canada saw little change in April 2025 (+7,400; +0.0%), showing a tiny increase from March and February.
The unemployment rate, however, rose to 6.9%, the highest rate it has seen since 2017.
This follows a period where the employment rate increased for three months between November and January 2025.
According to Statistics Canada, U.S.-Canada trade uncertainty has caused significant impacts on the labour markets.
"The April Labour Force Survey showed the first direct hit from the trade war, after several months of anticipation," says Brendon Bernard, Indeed's senior economist. “Conditions were already trending in the wrong direction, and now with the unemployment rate already approaching 7%, more months like this would send the labour market to its weakest state (outside the pandemic) in years.”
Public sector employment rose by 23,000 (+0.5%) in April, marking the first notable gain after three months of little change. Statistics Canada attributes this growth in part to temporary hiring related to the federal election.
Employment in the private sector was little changed, following a decline of 48,000 (-0.3%) in March.
Self-employment remained the same for the third consecutive month in April.
This month’s Statistics Canada numbers recorded core-aged women (25 to 54) experiencing the most decline. According to the report, core-aged women's employment declined by 60,000 (-0.9%), offsetting the net gain of 62,000 (+1.0%) recorded between December 2024 and February 2025. The drop was largely driven by a decline in part-time work (-41,000; -3.9%).
Among core-aged men, employment rose by 24,000 (+0.3%) after two months of little change. The employment rate increased by 0.2 percentage points, offsetting a decline of 0.4 points recorded in the previous month.
For people aged 55 and older, both women and men saw increases of 35,000 (+0.8%). Women in this age group saw an increase of 19,000 jobs (+1.0%), while employment among men rose by 16,000 (+0.7%). The employment rate also edged up for both groups, rising by 0.2 percentage points to 29.7% for women and 39.0% for men.
The unemployment rate rose 0.2 percentage points to 6.9% in April, following a smaller increase in March (+0.1 percentage points). This brings the rate back to its November 2024 level, which was the highest since January 2017, excluding the COVID-19 years.
The number of unemployed individuals — those actively seeking work or on temporary layoff — grew by 39,000 (+2.6%) in April and was 189,000 (+13.9%) higher than a year ago.
Job seekers continued to face increased challenges: 61.0% of those unemployed in March remained unemployed in April, compared to 57.3% during the same period last year.
Layoffs remained relatively stable, with 0.7% of employed workers in March becoming unemployed in April, little changed from 0.6% in 2024.
The industry that recorded the largest employment decline this month was manufacturing, wholesale, and retail trade.
In manufacturing, employment fell by 31,000 (-1.6%), the first major decline since November 2024, with losses concentrated in Ontario (-33,000; -3.9%) amid ongoing tariff-related uncertainty. Despite the monthly drop, manufacturing employment was little changed year-over-year.
Wholesale and retail trade employment declined by 27,000 (-0.9%), following a similar drop in March, effectively erasing February’s gains.
Public administration and finance-related sectors were the only industries where employment was little changed across most sectors, according to Statistics Canada.
In public administration, employment increased by 37,000 (+3.0%), driven by temporary hiring related to the federal election.
In finance, insurance, real estate, rental, and leasing, employment rose by 24,000 (+1.6%), continuing steady growth since October 2024, with cumulative gains of 67,000 (+4.7%).
Ontario likely faced the biggest employment decline, the report finds, compared to other regions, due to losses in manufacturing and wholesale/retail trade. The unemployment rate in the province rose by 0.3 percentage points, reaching 7.8%.
In Quebec, employment rose by 18,000 (+0.4%), the province’s first significant gain since November 2024. However, more people entered the labour force, pushing the unemployment rate up 0.3 percentage points to 6.0%.
In Alberta, employment increased by 15,000 (+0.6%), offsetting losses from March. The unemployment rate remained steady at 7.1%, despite the gain in jobs.
