3 Months of Declines: What's Really Happening in the Canadian Labour Market?

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Share to WhatsappCanada's employment outlook continued to weaken in April with a small decline of 6,200 payroll jobs, marking the third consecutive month of declines. However, total employment still posted an annual increase of 30,400 (+0.2%) compared to April 2024.


Data from Statistics Canada showed that nine of the 20 sectors saw declines, including manufacturing (-7,300), accommodation and food services (-5,800), retail trade (-5,000) and administrative services (-4,700). In contrast, health care and social assistance (+10,800), public administration (+6,200) and education (+5,200) contributed to job gains.


Manufacturing remained the main weakness with a loss of 13,500 jobs since January 2025, driven by a decline in transportation equipment manufacturing. The accommodation and food sector also continued to decline with a cumulative loss of 15,000 jobs over the four months, mainly in restaurants and tourist accommodation. The retail trade sector recorded three consecutive months of declines with a decline of 20,300 jobs since February, and an annual decline of 33,400 jobs.


Despite the job losses, average weekly earnings rose to $1,297 in April (+0.8% compared to March; +4.4% annually), while average hours worked remained stable at 33.5 hours per week. The healthcare sector continued to be the main driver of growth with 230,000 jobs added since August 2022 (+10.4%).


The job vacancy situation also showed signs of cooling, with job vacancies falling by 16,800 to 501,300, the lowest level since October 2017. The job vacancy rate fell to 2.8%, while the unemployment-to-vacancy ratio increased to 3.1. Job vacancies in the finance and wholesale trade sectors recorded the largest monthly declines, and several provinces including British Columbia, Alberta and New Brunswick also experienced significant declines in employment opportunities.

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