Mark Carney in dire straits: Canada, one of the largest and richest countries in the world, added just 7,400 jobs in April as unemployment rate rises to 6.9%
How badly is the manufacturing sector being hit?
Live Events
Is the bank of Canada planning to cut interest rates?
What's happening with wage growth and public sector jobs?
Is Canada's job market falling behind population growth?
FAQs:
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Canada's job market took a hit in April, with just 7,400 new jobs added and the unemployment rate climbing to 6.9%, its highest level since November 2023. As one of the world's wealthiest and most resource-rich nations, this sharp slowdown in employment growth raises fresh concerns about the country's economic resilience. Much of this weak job performance is being linked to U.S. tariffs, especially those targeting key Canadian exports like steel, aluminum, and automobiles.Data from Statistics Canada paints a troubling picture: nearly 1.6 million Canadians are now out of work, and the job market is starting to show serious cracks under growing international pressure.The unemployment rate in April reached 6.9%, matching levels last seen in November, and edging past analysts' expectations of 6.8%. While the economy technically added jobs—7,400 net gains—this growth was too small to keep up with the expanding labor force. Last month, the country lost 32,600 jobs, making April's improvement look modest by comparison.The driving force behind these numbers? A combination of U.S. trade tariffs and slowing export demand. Donald Trump's tariffs on Canadian steel, aluminum, and now vehicles have begun to bite, hitting manufacturing jobs hard.In one of the starkest signals yet, 31,000 jobs were lost in Canada's manufacturing sector in April alone, according to Statscan. That's a serious blow for an economy heavily reliant on exports. The job losses were directly tied to U.S. import duties and the broader uncertainty caused by the trade tensions.Retail and wholesale trade also showed weakness, with both sectors posting job losses. 'People who were unemployed continued to face more difficulties finding work in April than a year earlier,' Statscan reported.Among those unemployed in March, 61% remained unemployed in April, up nearly 4 percentage points from the same time last year.With economic data weakening and job growth barely moving, many economists now expect the Bank of Canada to respond with an interest rate cut in June. Market odds for a 25 basis point cut now sit above 55%, according to the currency swap market.Ali Jaffery, senior economist at CIBC Capital Markets, said the job market was already soft before the trade war started and now appears "like it could soon buckle."The Canadian dollar edged up slightly by 0.1% to 1.3909 U.S. dollar (around 71.90 cents), while two-year government bond yields fell by 3.3 basis points to 2.586%, reflecting growing investor concern.There were some positive signs in the data, though limited. Public sector employment grew by 23,000 jobs (0.5%) in April, mainly due to temporary hires related to the federal election. However, outside of this bump, job growth remained stagnant.Wage growth also remained flat. Average hourly wages for permanent employees rose 3.5% year-over-year, the same pace as in March. While wage growth at this level can help workers keep up with inflation, it doesn't signal strong labor market momentum.Another concern raised by Statistics Canada was the employment rate, which measures the share of the working-age population with jobs. That figure dropped to 60.8% in April, the lowest in six months. In March, it had already dipped by 0.2 percentage points.This decline reflects a broader trend where employment gains haven't kept pace with population growth. While population growth has recently slowed, hiring has cooled even faster, putting pressure on the labor force and social systems.Due to weak job growth and U.S. tariffs hitting manufacturing.Markets expect a likely rate cut to support the slowing economy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
38 minutes ago
- New Indian Express
Trump, EU chief seek deal in transatlantic trade standoff
TUNBERRY, UK: US President Donald Trump and EU chief Ursula von der Leyen were set for make-or-break talks in Scotland Sunday, aimed at ending a months-long transatlantic trade standoff, as negotiations went down to the wire. Trump has said he sees a one-in-two chance of a deal with the European Union, which faces an across-the-board US levy of 30 percent unless it strikes a trade pact by August 1 -- with Washington warning Sunday there would be "no extensions." Von der Leyen's European Commission, negotiating on behalf of EU countries, is pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. According to an EU diplomat briefed ahead of the meeting, set for 4:30 pm (1530 GMT), the contours of a deal are in place after talks went late into Saturday night -- but key issues still need settling. And of course the final word lies with Trump. "A political deal is on the table -- but it needs the sign-off from Trump, who wants to negotiate this down to the very last moment," the diplomat told AFP. The proposal, they said, involves a baseline levy of around 15 percent on EU exports to the United States -- the level secured by Japan -- with carve-outs for critical sectors including aircraft and spirits, though not for wine. Any deal will need to be approved by EU member states -- whose ambassadors, on a visit to Greenland, were updated by the commission Sunday morning, and would meet again after any accord. According to the EU diplomat, the 27 countries broadly endorsed the deal as envisaged -- while recalling their negotiating red lines.
Time of India
an hour ago
- Time of India
Nibe Limited signs agreement with with Israel's Elbit Systems; to manufacture Advanced Universal Rocket Launcher
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Private defence manufacturing comapany NIBE Limited signed a Technology Collaboration Agreement with Elbit Systems , a Israeli defence company for Advanced Universal Rocket Launcher partnership is aimed at manufacturing and supply of Universal Rocket Launcher ( SURYA ), which is a highly advanced defence system capable of engaging targets with precision over a range of up to 300 technology transfer will be the first time that such a sophisticated system will be produced in India, paving the way for both domestic and international markets, ANI reported"The Universal Rocket Launcher is set to revolutionise modern warfare with its remarkable capabilities and performance, positioning NIBE Limited as a key player in the global defense sector ," the company said in a release. Elbit Land Systems , a division of Elbit Systems Ltd. , is a global leader in the design, development, and integration of advanced land-based defense solutions. The company specialises in a wide range of platforms and technologies, including armored vehicles, artillery systems, unmanned ground vehicles, and combat vehicle modernisation and is known for its innovation, reliability, and battlefield-proven systems.
Mint
2 hours ago
- Mint
Wall St Week Ahead-Tariffs, Fed, tech results headline jam-packed markets week
(Repeats SCHEDULED COLUMN originally published on July 25, no changes) Aug 1 deadline looms for US trading partners Fed policy decision Weds, US jobs report Fri Results due from Apple, Microsoft, Amazon, Meta NEW YORK, July 25 (Reuters) - A looming U.S. deadline for more severe global tariffs is among a barrage of upcoming events threatening to disrupt an increasingly calm U.S. stock market that has set a string of all-time highs. President Donald Trump has extended a deadline to August 1 for when higher levies will take effect on an array of trading partners unless deals are struck. That could boost market volatility heading into next Friday. Much more is on the calendar that could move markets. Investors will watch the Federal Reserve's monetary policy meeting, the monthly U.S. employment report and earnings reports from megacap companies Apple, Microsoft and Amazon. "There is going to be a lot to digest for markets into next week," said Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments. "Expectations from the markets have gone up relative to several months ago," Miskin said. "So it's just going to be another big week for trying to meet loftier expectations." RECORD HIGHS, FALLING VOLATILITY The benchmark S&P 500 kept tallying new all-time highs during the week. Equities have recovered from a plunge after Trump's April 2 "Liberation Day" tariff announcement set off fears of a recession that have since ebbed. The S&P 500 has surged 28% since its low for the year a week later, while the tech-heavy Nasdaq Composite has jumped 38% in that time. "We just got three years of return in three and a half months," said Chris Galipeau, senior market strategist at the Franklin Templeton Institute. "The equity market needs to consolidate this move." Market volatility measures have eased considerably. The Cboe Volatility Index spiked to 60 in April, but has been below its long-term median of 17.6 for most of July and on Wednesday posted its lowest close in five months. However, pockets of volatility have emerged in the past week. Eye-popping gains in highly shorted stocks such as Kohl's and Opendoor Technologies heralded the possible return of a "meme stock" craze that could signal some over-exuberance in risk appetite, at least among retail investors. Meanwhile, the record-setting rally has lifted valuations to historically expensive levels. The S&P 500 was trading at 22.6 times earnings estimates, well above its long-term average P/E ratio of 15.8, according to LSEG Datastream, which could make the market vulnerable to disappointments in the coming week. Higher tariffs on the European Union and many other countries could take effect on August 1. Trump had paused many of the most severe of his reciprocal tariffs in April, following the bout of extreme market volatility. "There is a particular belief and conviction that the market has that the administration just won't be as aggressive as they've been threatening because of what was experienced in early April," said Kevin Gordon, senior investment strategist at Charles Schwab. "The next hurdle in the trade (situation) is really to see what sticks." FED OFFICIALS AWAIT TARIFF IMPACT The Fed is widely expected to hold interest rates steady in its monetary policy decision on Wednesday, as central bank officials want more data to determine if tariffs are worsening inflation before they ease rates further. But tensions between the White House and the central bank over monetary policy have heightened, with Trump repeatedly denouncing Fed Chair Jerome Powell for not cutting rates. Two of the Fed Board's Trump appointees have articulated reasons for supporting a rate cut this month. A packed week of corporate results includes Apple, Microsoft, Amazon and Facebook parent Meta Platforms, four of the "Magnificent Seven," whose stocks heavily influence benchmark indexes because of the companies' massive market values. With about 30% of S&P 500 companies having reported results, overall second-quarter earnings are on track for a 7.7% increase from a year ago, according to LSEG IBES. That would beat a 5.8% estimated rise on July 1. The week ends with the monthly U.S. employment report on Friday. Employment in July is expected to have increased by 102,000 jobs, according to Reuters data as of Thursday, after rising by 147,000 jobs in June. "We've had relatively strong economic data that almost shows a modest re-acceleration in the economy in June and I think markets are priced to reflect this re-acceleration," Miskin said.
