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Canada’s labour market is ‘static’ after a year of U.S. tariffs, population shift

On Thursday, April 2, 2026, economists reported Canada's labour market has stalled after one year of President Donald Trump's 'Liberation Day' tariffs, with disruption now spreading beyond directly exposed sectors.
Manufacturing, a sector targeted by steel, aluminum, and auto tariffs, shed 51,800 jobs over the past 12 months, with manufacturing-heavy Ontario bearing the brunt of losses according to Statistics Canada.
StatCan reported an 84,000-job loss in February, revealing cracks in the previously resilient services sector; while services industries added 85,900 positions year-over-year, recent data suggests this buffer is weakening.
Demographic shifts, including a shrinking labour pool, remain the primary driver of the flat outlook, with Desjardins senior economist Kari Norman projecting unemployment will hold around 6.7 per cent in 2026.
Later this year, the Canada-U-Mexico trade agreement review will be critical for manufacturing recovery, as economists anticipate stabilizing tariff levels could help the industry level off rather than decline.

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29 Articles

The Globe & Mail

Center

Canada’s labour market is ‘static’ after a year of U.S. tariffs, demographic shifts

Weakness in industries hit hard by tariffs could be spilling over into services and other sectors, economists say

5 hours ago·Canada

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The Toronto Star

+6 Reposted by 6 other sources

Lean Left

Canada’s labour market is ‘static’ after a year of U.S. tariffs, population shift

OTTAWA - Thursday marks one year since U.S. President Donald Trump upended the global trading system with his "Liberation Day" duties — a major step in his wider tariff campaign

9 hours ago·Toronto, Canada

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