Canada Loses 100,000 Jobs in 2026's Steepest Drop Since 2021 as Hiring Stalls

4 articles · Updated · BNN Bloomberg · May 22

More than 100,000 jobs disappeared between January and April, marking Canada’s sharpest employment decline since 2021, but economists say the damage is being driven more by weak hiring than broad-based layoffs.
Permanent layoffs have trended lower since late 2025, creating a “low hire, low fire” market in which new entrants—including graduates and returning workers—face too few openings.
Manufacturing, auto production and aluminum processing remain the main weak spots, with U.S. trade pressures, higher gasoline-linked input costs and wider geopolitical uncertainty delaying hiring despite stronger business intentions.
Younger workers are bearing the brunt as entry-level hiring slows amid economic caution and AI-related productivity bets, while slower immigration and rising retirements tighten labour supply.
RBC expects resilient domestic demand to help unemployment edge down to 6.3% by year-end, though that outlook still depends on external risks such as Middle East tensions and fuel prices.

Jobs are vanishing without mass layoffs. Is this a sign of resilience or a hidden crisis for Canada's workers?

With AI automating entry-level work, are young Canadians facing a permanent career disadvantage?

With a critical trade deal review looming, is Canada's economy on the brink of a much deeper crisis?