Canada's Job Market Woes: Impact of U.S. Tariffs on Employment and Economy

Canada's unemployment rate reached 6.9% in April, influenced significantly by U.S. tariffs on Canadian exports, marking the highest level since November. Statistics Canada reported a growth in joblessness, particularly in the manufacturing sector, where conditions worsened due to economic pressures imposed by tariffs.

April saw minimal net employment gains of 7,400 jobs, contrasting with a loss of 32,600 jobs in March. These figures underscore the impact of U.S. tariffs on Canadian steel, aluminum, and automobiles, which have led to reduced exports and heightened economic uncertainty, sparking potential intervention from the Bank of Canada.

The report also highlights stagnant wage growth at 3.5%, while public sector employment showed growth due to temporary hiring for federal elections. Economic forecasts and currency market behaviours signal that a rate cut could be on the horizon as the Canadian economy navigates these challenges.

(With inputs from agencies.)