Canada Job Market Report: Latest Stats & Trends (APR 2025)

The April 2025 Canada job market report reveals job losses in sectors hard hit by tariffs. For those soon to arrive or recently arrived in Canada, knowing how the job market is performing will help you prepare to join the workforce. Discover growth sectors, unemployment rates, and job market performance.

Changes in the Canadian Job Market by Sector

According to Statistics Canada, the economy added 7,400 jobs, a small increase from March and February. The unemployment rate rose to 6.9%, the highest since November 2024. The rising unemployment rate suggests employers were not hiring as quickly as the population grew.

Sectors that saw job gains in April included:

Canada’s manufacturing industry led job losses in April, with a loss of 31,000 (-1.6%). Manufacturing continues to face uncertainty due to tariffs on exports to the United States. Ontario saw the greatest decline in manufacturing jobs.

These sectors also saw job losses:

• Wholesale and retail trade (-27,000; -0.9%)
• Business, building and other support services (-14,500 jobs; -2.0%)
• Accommodation and food service (-8,500; -0.7%)
• Construction (-1,800; -0.1%)

Provincial and City Unemployment Rates

The unemployment rate measures the health of the economy and the job market. Amid the uncertainty created by the ongoing trade war with the United States, the national unemployment rate rose to 6.9% in April from 6.7% in March.

Provincial Unemployment Rates, April 2025

The unemployment rate reached 10.7% in Windsor, Ontario, where the automotive industry accounts for 43.1% of manufacturing employment. The trade war is expected to hit export-dependent sectors harder. The automotive sector is mainly located in Ontario’s manufacturing heartland.

Canada Job Market Report Highlights

• The services sector saw solid gains, led by increases in public administration and finance.

• Manufacturing saw the greatest employment losses among goods-producing industries.

• Among provinces, employment rose in Quebec (+18,000), Alberta (+15,000), Manitoba (+5,700), and Newfoundland and Labrador (+3,800).

• Employment declined in Ontario (-34,600), Nova Scotia (-8,500), and New Brunswick (-1,200).

• Alberta added 15,000 jobs with growth in the services-producing sector, which includes healthcare (+14,000), retail (+27,000), and finance (+3,000).

Economist Predictions for the Canadian Job Market

Economists expect the weakening job market could persist through the summer in an uncertain trade war.

Derek Holt, Scotiabank’s vice president and head of capital markets economics, said the details of the jobs data, like the election hiring bump are “messy” and make the report difficult to trust.

Holt said the jump in full-time positions may reflect retirees taking on temporary work during the election, effects that will reverse in May.

BMO chief economist said, “This is the first major data reading for April, and it shows that tariffs are already taking a material bite out of the economy”.

Nathan Janzen, assistant chief economist at RBC said in an interview that while local employment data can be “volatile,” weakness is expected in communities that are weighted toward trade-sensitive sectors like auto manufacturing.

Tariffs are Impacting the Labour Market

In March, the Donald Trump U.S. administration put tariffs on many imported goods from Canada, like steel and aluminum imports. This action continues to create uncertainty for Canadian businesses and the job market.

Trade tensions may discourage investment, and a lack of business confidence will impact hiring.

Shifting Immigration Policy

Canada’s labour market will face added pressure due to a shift in immigration policy when targets were lowered for 2025 – 2027. However, the newly elected Liberal government is committed to ensuring immigration changes benefit the economy and jobs.

The government will focus on balancing its approach while maintaining Canada’s reputation as a welcoming nation.

Inflation, Interest Rates, and the Job Market

The Bank of Canada aims to keep inflation close to 2%. Inflation unexpectedly fell to 2.3% in March, down from 2.6% in February. The drop was due to lower gasoline and travel tour prices.

Experts predicted inflation would rise in the short term during the trade war. However, the Bank of Canada warns that a lengthy trade war will cause economic damage and may lead to job losses due to layoffs.

Key factors driving Canada’s recent steady job growth before March have been lower inflation, interest rates, and a drop in international students and temporary foreign workers.

On April 16, the Bank of Canada held its interest rate at 2.75% following seven consecutive cuts. Many economists predict an interest rate cut in June, affecting both job creation and the cost of living.

Exactly what impact tariffs, inflation, and interest rates will have on the Canadian job market in the short- and long-term remains uncertain. So, newcomers must pay attention to these issues.

Key Takeaways

Understanding job market trends is crucial for newcomers seeking to enter Canada’s job market. The job market losses in April reinforce the economic uncertainty created by tariffs and the global trade war.

With a changing job market, it’s vital to know how your specific industry and occupation will be affected. Researching job prospects for your profession will make it easier to continue your career in Canada.