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Time of India
09-05-2025
- Business
- Time of India
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%
Why is Canada's unemployment rate rising now? 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 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 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 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 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 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 those unemployed in March, 61% remained unemployed in April, up nearly 4 percentage points from the same time last 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 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 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 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 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 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 to weak job growth and U.S. tariffs hitting expect a likely rate cut to support the slowing economy.
Khaleej Times
10-03-2025
- Business
- Khaleej Times
Mark Carney wins race to succeed Trudeau as Canada's PM
Former governor of the bank of Canada Mark Carney will succeed Justin Trudeau as the country's prime minister after winning the race to become leader of the ruling Liberal Party, official results showed on Sunday. Carney will take over at a tumultuous time in Canada, which is in the midst of a trade war with longtime ally the US and must hold a general election soon. Carney, 59, beat former Finance Minister Chrystia Freeland who came in second place in a contest in which just over 150,000 party members voted. Trudeau announced in January that he would step down after more than nine years in power as his approval rating plummeted, forcing the ruling Liberal Party to run a quick contest to replace him. Carney, a political novice, argued that he was best placed to revive the party and to oversee trade negotiations with US President Donald Trump, who is threatening additional tariffs that could cripple Canada's export-dependent economy. Carney was the front-runner, with the most endorsements from party members and the most money raised among the four Liberal candidates. Carney's win marks the first time an outsider with no real political background has become Canadian prime minister. He has said his experience as the first person to serve as the governor of two G7 central banks - Canada and England - meant he was the best candidate to deal with Trump. During the campaign, Carney said he supported dollar-for-dollar retaliatory tariffs against the US and a coordinated strategy to boost investment. He has repeatedly complained that Canada's growth under Trudeau was not good enough. The prospect of a fresh start for the Liberal Party under Carney, combined with Trump's tariffs and his repeated taunts to annex Canada as the 51st US state, led to a remarkable revival of Liberal fortunes.
