Canada’s job market cools as young workers face the hardest squeeze

By Tahani Elghazaly
Published May 10, 2026

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Canada’s labour market is facing another test after new April 2026 data showed fewer jobs, a higher unemployment rate, and tougher conditions for young people trying to enter or stay in the workforce.

Statistics Canada said employment fell by about 18,000 jobs in April, a monthly decline of 0.1%. The national unemployment rate rose from 6.7% to 6.9%, partly because more people were actively looking for work.

The pressure was especially clear among young Canadians aged 15 to 24. Their unemployment rate rose to 14.3%, well above the pre-pandemic average of 10.8%. For students, recent graduates, and newcomers trying to secure their first Canadian job, the latest numbers point to a more competitive and less forgiving market.

The weakness was also visible in the type of work available. Full-time employment fell by about 47,000 positions, while part-time work rose by about 29,000. That shift matters for households already dealing with high rent, food costs, transportation expenses, and uncertainty around future income.

Provincial results were mixed. Quebec lost about 43,000 jobs in April, while Ontario added about 42,000. In the Montréal census metropolitan area, the unemployment rate rose to 7.7%, its highest level since July 2016 outside the pandemic years.

There was one brighter signal: average hourly wages rose 4.5% year over year to $37.77. But higher wages do not fully erase the pressure many workers feel, especially when job security and access to full-time work remain uneven.

The latest report does not suggest a labour market collapse. It does, however, show a cooler economy, slower hiring, and a harder path for young people and job seekers.

For workers in Canada, the practical message is clear: applying online is no longer enough. Networking, targeted applications, short practical training, and direct contact with employers may matter more in a market where competition is rising.