Canada’s unemployment rate climbed to 6.9 per cent in April, the highest level in six months, as the country lost thousands of full-time jobs and economic uncertainty continued to weigh on employers.

Statistics Canada reported the economy lost a net 17,700 jobs during the month, surprising economists who had expected employment gains. The decline was driven by a sharp drop in full-time positions, while part-time employment increased.

The latest figures show full-time employment has fallen by more than 111,000 jobs since the start of 2026. Much of the weakness has been concentrated in goods-producing industries, including construction and transportation, as ongoing trade uncertainty and U.S. tariffs continue to affect Canadian businesses.

The labour force participation rate edged slightly higher to 65 per cent as more Canadians searched for work, adding pressure to the unemployment rate. Youth unemployment also increased, reaching 14.3 per cent.

Average hourly wage growth slowed to 4.8 per cent in April from 5.1 per cent the previous month, another sign the labour market may be softening after a prolonged period of higher interest rates and economic strain.

Financial markets reacted quickly to the report, with expectations for additional interest rate increases from the Bank of Canada easing following the weaker-than-expected employment data. The Canadian dollar also slipped against the U.S. dollar after the numbers were released.

Economists said the report suggests employers are becoming more cautious about hiring as businesses deal with slower growth, rising costs and continued uncertainty surrounding international trade.