FX.co ★ Canada Unemployment Rate Rises to Over 3-Year High

In April 2025, Canada's unemployment rate increased to 6.9%, up from 6.7% in March. This rise returned to the over-three-year peak seen in November of the previous year and surpassed market forecasts of 6.8%. The uptick was attributed to an increase in the number of unemployed individuals, with 39,300 more people jobless, bringing the total to 1,548,100. This trend suggests that businesses may be experiencing the ramifications of tariffs imposed by the United States. On a positive note, net employment edged up by 7,500, slightly exceeding the anticipated 2,500, and offsetting much of the 32,600 employment drop from the previous month. Particularly impacted was the manufacturing sector, which saw a net decrease of 31,000 jobs, heavily due to its vulnerability to tariffs, especially in the aluminum, steel, and automotive industries, which faced the highest tax rates from the US. As a result, the increase in the labor force led to a 0.1 percentage point rise in labor force participation, bringing it to 65.3%.