Canada’s Job Market in April 2025: Employment Flat, Unemployment Rises to 6.9%

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Canada's labour market showed signs of growing tension in April 2025 as employment remained flat while unemployment edged up to 6.9%, the highest rate since late 2024. According to the latest Labour Force Survey from Statistics Canada, the national job market remains under pressure from shifting sectoral trends, regional disparities, and changing workforce demographics.

Key Highlights – April 2025

Employment remained nearly flat: +7,400 jobs (+0.0%)

April saw a negligible change in employment, following a notable drop of 33,000 jobs in March. This stagnation is concerning given Canada’s fast-growing population, suggesting that job creation isn't keeping pace with labour force growth.

Employment rate dropped: From 60.9% to 60.8%

The employment rate measures the share of the population aged 15+ who are working. April's decline reflects population growth outpacing employment gains, continuing a trend observed since 2023.

Unemployment rate rose: From 6.7% to 6.9%

This 0.2 percentage point rise marks the second consecutive month of increase. With more people entering the labour market and fewer jobs being created, job competition is intensifying.

Wages continued to grow: +3.4% year-over-year to $36.13/hour

Despite flat job growth, wages rose by $1.20 compared to April 2024. This modest wage inflation may help offset cost-of-living increases and signals some underlying employer demand.

Hours worked increased: +0.4% month-over-month, +0.9% year-over-year

More hours worked typically indicate stronger business activity or increased reliance on existing employees, even when new hiring slows.

• Employment change: +7,400 (little change, +0.0%)
• Employment rate: Dropped to 60.8% (down 0.1 percentage points)
• Unemployment rate: Increased to 6.9% (+0.2 pp)
• Wage growth: Average hourly wages rose 3.4% year-over-year to $36.13
• Total hours worked: +0.4% monthly increase; +0.9% YoY
• Core-aged women (25–54): -60,000 jobs
• Older workers (55+): +35,000 jobs
• Public administration jobs: +37,000 (election-related)
• Manufacturing jobs: -31,000 (mainly Ontario)
• Retail & wholesale trade: -27,000 jobs
• Finance & real estate: +24,000 jobs

Employment Trends: Flat Growth Hides Sectoral Shifts

Employment in Canada was largely unchanged in April 2025, with just a modest increase of 7,400 positions, following a significant decline in March.

Sectoral Trends: Winners and Losers

📉 Industries with Job Losses

• Manufacturing: -31,000 jobs (-1.6%) The manufacturing sector faced its largest monthly job loss since November 2024. Much of this decline occurred in Ontario, driven by uncertainties around U.S. tariffs on Canadian exports.
• Wholesale and Retail Trade: -27,000 jobs (-0.9%) Following a similar drop in March, retail and wholesale employment continued its downward slide in April, wiping out earlier gains from February.
• Business Support Services: -14,500 jobs (-2.0%) This sector, which includes administrative and cleaning services, posted a significant drop. Such jobs are often sensitive to broader economic slowdowns and corporate budget cuts.

📈 Industries with Job Gains

• Public Administration: +37,000 jobs (+3.0%) This increase was linked to temporary hiring for the April 28 federal election. Public sector hiring also marked a rebound after three months of stagnation.
• Finance, Insurance, Real Estate & Leasing: +24,000 jobs (+1.6%) Employment in this sector has been trending up since October 2024, reflecting ongoing demand for housing services and financial transactions.
• Utilities & Technical Services: Moderate gains Utilities grew by 2.6%, while professional and scientific services saw small but steady increases, suggesting continued demand for infrastructure and innovation-related roles.

Sectors with Employment Losses:

• Manufacturing: -31,000 jobs (-1.6%)
• Wholesale & Retail Trade: -27,000 jobs (-0.9%)
• Business Support Services: -14,500 jobs (-2.0%)

These declines reflect economic uncertainty, including ongoing tariff tensions with the United States, which have particularly hurt manufacturing in Ontario.

Sectors with Gains:

• Public Administration: +37,000 jobs (+3.0%) due to temporary hiring for the federal election
• Finance, Insurance & Real Estate: +24,000 jobs (+1.6%)
• Utilities: +3,900 jobs (+2.6%)
• Professional & Technical Services: +6,200 jobs (+0.3%)

Workforce Demographics: Who’s Affected?

👩‍🦰 Core-Aged Women (25–54):

• Lost 60,000 jobs in April (-0.9%)
• Employment rate fell to 79.6%
• Unemployment rate rose to 5.8% Employment among core-aged women saw a sharp drop, mainly in part-time work. This group had been experiencing modest gains in recent months, but April reversed those trends, likely influenced by cuts in retail, healthcare, and administrative roles.

👨‍🦱 Core-Aged Men (25–54):

• Gained 24,000 jobs (+0.3%)
• Employment rate increased to 86.5%
• Unemployment rate dropped to 5.8% Men in this age group saw slight improvements, with a return to full-time work. These gains offset some of the losses experienced by women, keeping the overall core-aged employment level relatively stable.

👵 Workers Aged 55+:

• Added 35,000 jobs (+0.8%)
• Employment rate rose to 34.2% Older workers continued to see gains, especially in part-time or contract-based positions. This may reflect both employer demand for experienced talent and financial need among older Canadians delaying retirement.

👦 Youth Aged 15–24:

• Employment was stable
• Unemployment rose to 14.1% While youth employment levels held steady, a growing number of young men entered the labour force, driving up the unemployment rate. This group continues to face higher competition and more volatile hiring conditions.

Industry Breakdown

Industry	April Change	% Change
Public Administration	+37,100	+3.0%
Finance, Insurance & Real Estate	+24,000	+1.6%
Manufacturing	-30,600	-1.6%
Wholesale & Retail Trade	-26,800	-0.9%
Healthcare & Social Assistance	-7,800	-0.3%
Accommodation & Food Services	-8,500	-0.7%
Natural Resources	-7,500	-2.2%
Business & Support Services	-14,500	-2.0%

Provincial Trends: Ontario Slips, Quebec and Alberta Recover

📉 Ontario:

• Lost 35,000 jobs
• Unemployment rate rose to 7.8% Ontario experienced sharp declines in manufacturing (-33,000) and retail. Windsor’s jobless rate surged to 10.7%, while Toronto remained elevated at 8.6%.

📈 Quebec:

• Gained 18,000 jobs
• Unemployment rose slightly to 6.0% While job creation was strong, a growing number of job seekers entering the market kept unemployment from dropping.

📈 Alberta:

• Added 15,000 jobs
• Unemployment steady at 7.1% Alberta showed signs of recovery after a soft March. Gains were seen across multiple sectors including construction and real estate.

📉 Nova Scotia:

• Lost 8,500 jobs
• Unemployment rose to 7.2% Both full-time and part-time employment fell, impacting men and youth in particular. Participation and employment rates also dipped.

📈 Manitoba and Newfoundland:

• Manitoba: +5,700 jobs, unemployment down to 5.3%
• Newfoundland & Labrador: +3,800 jobs, unemployment down to 9.6% These provinces saw moderate growth, possibly due to seasonal factors and temporary hiring in sectors like public admin and agriculture.

Labour Participation and Unemployment Dynamics

• Participation Rate: Slightly increased to 65.3%
• Unemployment Rate: Up to 6.9%
• Job seekers struggling more: 61% of unemployed in March remained unemployed in April (vs. 57.3% last year)

📌 Insight: Growing unemployment with stagnant job creation signals rising competition for fewer opportunities, especially in manufacturing and retail sectors.

Canada vs. United States: Widening Unemployment Gap

• Adjusted Canadian unemployment: 5.8%
• U.S. unemployment rate: 4.2%
• Gap: 1.6 percentage points — significantly wider than the pre-pandemic average of 0.9 pp

Despite higher unemployment, Canada still has:

• Higher overall employment rate (61.5%) than U.S. (60.0%)
• Core-aged women participation rate: Canada (79.6%) vs. U.S. (75.0%)

Worker Sentiment: Growing Pessimism Ahead

Statistics Canada surveyed workers about future staffing expectations at their workplace:

• 13.2% expect workforce reductions in the next 6 months
  • 25.4% in public administration
  • 19.5% in education
• Workers in export-dependent sectors were more pessimistic:
  • 18.6% expect cuts
  • 8.9% fear losing their own job (vs. 7.7% national average)

Wage Growth: Holding Strong

• Average hourly wage rose to $36.13 in April (+3.4% YoY)
• This follows a 3.6% increase in March
• Outpacing inflation helps protect consumer spending power

Quick Summary

Metric	April 2025	Trend
Employment Change	+7,400 jobs	Flat
Unemployment Rate	6.9%	↑ 0.2 pp
Core-aged Women Employment	-60,000	↓
Manufacturing Jobs	-31,000	↓
Public Sector Jobs	+23,000	↑ (election-related)
Average Hourly Wage	$36.13	↑ 3.4% YoY
Participation Rate	65.3%	Slight ↑
Ontario Employment	-35,000	↓
Alberta & Quebec Employment	+15K & +18K	↑

April 2025 paints a complex picture of Canada’s labour market. On the surface, job numbers appear stable. But beneath that, structural pressures are shifting the economic landscape — from trade impacts on manufacturing to gender-based disparities and rising pessimism in key sectors.

Employers and policymakers must monitor these trends closely, especially as Canada’s population continues to grow faster than employment. For job seekers, adapting to industry shifts and upgrading skills may be the best defense in a competitive market.

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