Investing.com -- Statistics Canada’s labor force survey for April 2025 shows a slight increase in employment by 7,400, with the employment rate declining by 0.1 percentage points to 60.8%. The unemployment rate saw a rise of 0.2 percentage points, reaching 6.9%, and higher than the expected increase in 0.1 points to 6.8%.
Of the results, CIBC (TSX:CM)’s Ali Jaffery called the report a "turn for the worst." "Overall, we are seeing a job market that was weak heading into the trade war, now looking like it could soon buckle. Today’s report supports the case for a Bank of Canada cut in June," Jaffery said.
The data reveals that employment among women aged 25 to 54 years decreased by 60,000, while it increased among individuals aged 55 years and older and men aged 25 to 54 years. There was a decline in employment in the manufacturing and wholesale and retail trade sectors, while public administration and finance, insurance, real estate, rental and leasing sectors experienced an increase.
Provincial employment data shows a decline in Ontario and Nova Scotia, while Quebec, Alberta, Manitoba, and Newfoundland and Labrador experienced an increase. The other provinces saw little change in employment.
The total hours worked in April 2025 saw a 0.4% increase, with a 0.9% increase compared to the same period in the previous year. Average hourly wages among employees increased 3.4% on a year-over-year basis in April, to $36.13, following a growth of 3.6% in March 2025.
The employment rate, which measures the proportion of the population aged 15 and older who are employed, fell a further 0.1 percentage points in April. This rate had been trending down for most of 2023 and 2024, as population growth outpaced employment gains. However, the employment rate had seen an increase for three consecutive months from November 2024 to January 2025, due to strong employment gains amid slower population growth.
Public sector employment increased by 23,000 in April, associated with temporary hiring for the federal election. The private sector and self-employment saw little change.
The unemployment rate rose to 6.9% in April, returning to its level of November 2024, which was the highest since January 2017, excluding the years 2020 and 2021, during the COVID-19 pandemic. The number of unemployed individuals increased by 39,000 in April and was up by 189,000 on a year-over-year basis.
The labor force participation rate increased by 0.1 percentage points to 65.3% in April, despite being down 0.4 percentage points on a year-over-year basis.
The unemployment rate increased among young men aged 15 to 24 in April, while it also increased for women aged 25 to 54 years. For men in the same age group, the unemployment rate fell.
Employment in the manufacturing sector fell in April, with Ontario posting the largest decline. Employment in wholesale and retail trade also declined, offsetting the strong gain recorded in February.
Employment in public administration rose in April, mostly in temporary work associated with the federal election. Employment in the finance, insurance, real estate, rental and leasing sectors also increased.
Employment in Ontario fell in April, with the largest declines in the manufacturing and wholesale and retail trade sectors. In Quebec, employment increased in April, as did employment in Alberta.
The unemployment rate in Canada, adjusted to US concepts, was 5.8% in April 2025, 1.6 percentage points higher than the rate in the United States. The employment rate was 61.5% in Canada compared with 60.0% in the United States.
Employees in industries dependent on US demand for Canadian exports were more likely to anticipate decreases in the number of employees at their workplace over the next six months.
