Unemployment in Canada Rises to 6.9% in April Due to Blow to Manufacturing Sector

Unemployment in Canada rises to 6.9%

Manufacturing sector loses 31,000 jobs

Windsor reaches 10.7% unemployment

Canada’s unemployment rate rose to 6.9% in April, up two-tenths from the previous month, according to data released Friday by Statistics Canada (EC), due to job losses in the manufacturing sector, especially in Ontario.

Unemployment in Canada rises to 6.9% in April / Photo: Canva

Why it matters:

It is the highest unemployment figure in Canada since November 2024, raising alarms about the economy in light of the consequences of the trade war with the United States, which includes tariffs on key Canadian products such as steel and aluminum.

What the data shows about unemployment in Canada:

Only 7,400 net jobs were created in April.

In March, 33,000 jobs were lost.

The rise in unemployment is attributed to a higher number of people actively looking for work, not a major net destruction of jobs.

Impact by sector:

The manufacturing sector lost 31,000 jobs, most of them in Ontario, where the country’s automotive plants are located.

Windsor, a border city with Detroit and heavily reliant on the auto industry, saw its unemployment rate rise to 10.7%, an increase of 1.4 percentage points.

Context: US-Canada Trade War

The US imposed 25% tariffs on Canadian products not covered by the USMCA.

Trade tensions have created uncertainty in Canada’s industrial sector.

It’s the first time since January 2017 (excluding the pandemic and November 2024) that unemployment exceeds 6.9%.

Between the lines:

Canada faces a structural challenge amid external pressure from its main trading partner.

The weakening of manufacturing could have a ripple effect on other industries and provinces.

Also of interest: Trump Threatens to Impose 100% Tariff on Mattel for Manufacturing Outside the US