Canada's Labor Market Shows Increased Slack, Economist Says

On May 8, Canadian Imperial Bank of Commerce Capital Markets economist Andrew Grantham stated that Canada's labor market is showing increased slack, as evidenced by a decrease in employment and a rise in the unemployment rate from 6.7% to 6.9% in April. According to Jin10, employment in Canada fell by 17,700 in April, with a decline in full-time positions being the primary factor. In the first four months of 2026, full-time employment in Canada decreased by approximately 47,000, a drop of about 0.3%. Grantham noted that the increased slack in the labor market is expected to limit the impact of oil price shocks on other goods and services sectors. He added that this data further reinforces the Canadian Imperial Bank of Commerce's expectation that the Bank of Canada will maintain a wait-and-see approach in 2026.