The labour market’s weak start to 2026 continued in April. Employment edged down, the third decline in four months, with no apparent momentum across private- or public-sector employees, or self-employment. Meanwhile, the unemployment rate ticked up, from 6.7% to 6.9%, returning to where it stood in October, after a temporary dip.
Flat population and aging demographics mean the sluggish pace of job growth doesn’t have the same negative implications for the health of the labour market that it would in other periods. This is evident in the working-age employment rate, which held steady at 74.3% in April, matching that of late 2024. Still, there’s no spark getting momentum back in the right direction, particularly for job seekers struggling to land work.
The youth employment situation remained dire in April, with the unemployment rate among 15- to 24-year-olds ticking up from 13.8% to 14.3%. As in recent years, the weakness was particularly acute among teenagers, whose employment rates have fallen off a cliff from three years ago. These struggles likely reflect weak hiring appetite in many of the sectors where teenagers frequently work, namely retail trade and accommodation and food services. However, the situation is aggravated by greater competition from older job seekers. In earlier years, this was driven by a surging number of non-permanent residents, while more recently, soft conditions in areas like professional and technical services have caused recent grads in their early 20s to find work in lower-paying services instead.
With subdued, though not sliding, economic growth, it’s likely we see more of the same as the year proceeds, including a continuation of the prevailing two-speed labour market. Job security has held strong, and wage growth is still relatively robust, coming in at a 4.5% year-over-year pace, though padded somewhat by shifting jobs mix. But difficult conditions facing job seekers, whether it’s youth looking to break into the market or the unemployed trying to get back to work, linger. There’s little sign of shifting into high gear any time soon.
