Released in early May, Canada’s employment report for April was a mixed bag. While the overall economy created 7,400 new positions, the unemployment rate still jumped to 6.9%. This number represents the highest recent figure since last November. This job growth is in stark contrast to huge losses in the state’s economic drivers, especially manufacturing and retail.
The biggest loss came from the manufacturing industry, which Statistics Canada says lost a major blow, losing 31,000 jobs in the month. The majority of these losses happened in Ontario, long considered a manufacturing heartland. At the same time, the wholesale and retail trade sector shed 27,000 jobs. This major downturn pinpoints the immense struggles these indispensable segments of the economy are experiencing.
By sharp contrast to these losses, Canada’s public administration sector added 37,000 jobs in April. This boost is mostly due to temporary jobs related to the federal election. Such fluctuations highlight the varying dynamics within the job market and underscore how specific events can influence employment trends.
Even with the national alarming increase in unemployment, a recently-released survey found just the opposite. Even more striking, a full 73.9% of employed workers aged 15-69 were very sure that they will not be laid off within half a year. Yet workers in industries that greatly benefit from exports to the United States remain anxious. These worries are a direct result of the tariffs placed on non-CUSMA compliant imports, which went into effect this past March, greatly damaging their businesses.
Windsor, Ontario, was hit hard as unemployment more than doubled. It increased by 1.4 percentage points to a disturbing 10.7%. This increase is symptomatic of the regional manufacturing industry’s larger fight against recent economic challenges.
Turning to earnings, growth of income in Canada, the average hourly wage in Canada increased 3.4 per cent on the year in April. However, despite this month’s increase being overall good news, it does represent a modest decrease from the 3.6% growth seen in March. This decline might be an omen of wage stagnation to come. We know that businesses are struggling right now with both the domestic and international economic climate.
Canada is indeed in the throes of some complex labor market dynamics. As certain sectors thrive, others are facing existential crises. Today, U.S. tariffs and other industry-specific challenges are weighing on employment trends. These effects will hopefully continue into the next few months.
