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Youth unemployment rises as Canada sheds 18K jobs

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Canada’s unemployment rate rose 0.2 per cent in April as the country lost around 18,000 jobs and more people looked for work.

Younger Canadians, though, saw unemployment rise by a larger margin than the overall rate, Statistics Canada shows, as the rate for Canadians aged 15 to 24 rose by half a percentage point to 14.3 per cent.

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While youth unemployment rose 1.3 percentage points in February to 13.8 per cent, it was unchanged in March. In April, the figure was at 14.3 per cent and hovered close to the recent high of 14.6 per cent in September 2025.

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For core-aged men, aged 25 to 54, unemployment rose 0.3 per cent to 6.1 per cent, while for women in the same age group, it was unchanged at 5.9 per cent.

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Among people aged 55 years and older, the unemployment rate was unchanged at 4.9 per cent in April.

The percentage of people who had been searching for work for a period of 27 weeks or more rose to 22.5 per cent in April, still significantly higher than the pre-COVID-19 pandemic average of 17.1 per cent from 2017 to 2019.

Full-time employment fell 0.3 per cent in April and part-time employment rose 0.8 per cent, Statistics Canada said.

Canada’s jobs market remains “underwhelming,” said Canadian Chamber of Commerce economist Anupriya Gangopadhyay.

Seeing a decline in full-time work and a rise in part-time work “should give us pause,” she said.

“This full-time displacement trend is something we will continue to watch closely to see if it becomes structural, given it’s not the signal of resilience that businesses and economic observers are looking for,” she added.

A silver lining for the Canadian job market was the decline in permanent layoffs, said RBC economist Claire Fan in a note on Friday.

“Hours worked remained essentially flat, and the labour force participation rate increased. Critically, and consistent with earlier trends, rising unemployment was driven not by layoffs but by weak hiring,” she said.

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The uptick in employment numbers in March was an aberration, said BMO chief economist Doug Porter.

“The underlying tone in Canada’s job market remains quite sour so far in 2026, as the uptick in March jobs proved to be a false dawn,” he said in a note.

Economists expect the Bank of Canada to continue holding interest rates.

“While the geopolitical situation in the Middle East remains unresolved and oil market volatility is high, today’s report is going to give the doves around the table in Governing Council more ammunition to keep rates unchanged,” said KPMG chief economist Ali Jaffery.

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