Canadian employment was virtually unchanged from the previous month, gaining 7,400 jobs to 20.969 million in April. The employment rate fell by 0.1 points to 60.8 per cent, while the unemployment rate rose by 0.2 points to 6.9 per cent. Average hourly wages rose 3.4 per cent year-over-year to $36.13 last month, while total hours worked were up 0.9 per cent compared to April of the previous year.

Employment in B.C. rose by 0.2 per cent to 2.951 million, gaining 6,000 jobs in April. Employment in Metro Vancouver fell by 0.7 per cent to 1.7 million in April. The unemployment rate in B.C. increased by 0.1 points to 6.2 per cent in April. Meanwhile, Vancouver's unemployment rate fell by 0.1 points to 6.3 per cent in the fourth month of the year. 

April's jobs report signals a further cooling of the Canadian labour market through the spring as tariff uncertainties continue to weigh on the Canadian economic outlook on multiple levels. As the anticipated consequences of tariffs ripple through the economy, the Bank of Canada may consider a rate cut during their next meeting to partially alleviate the economic damages caused by a highly volatile global trading environment.

Tariff-avoidant behaviour from Canadian households, businesses, and our trading partners alike propelled Canada's GDP growth in the first quarter above the Bank of Canada's most recent projection. Growth in the first quarter was largely driven by rising exports, as US firms and households purchased goods ahead of tariff implementation. As central bankers continue to worry about the economic damage caused by volatile trade policy, this report could influence the Bank of Canada towards a hold during their next meeting to curb the inflationary risks of tariffs. Moving forward, the Bank of Canada will be closely watching second-quarter data for signs of a weakening economy and broader price pressures due to current tariffs and the uncertainty over future trade policy.

Copyright British Columbia Real Estate Association. Reprinted with permission.