08:53 AM EDT, 05/09/2025 (MT Newswires) -- The Canadian job market took another turn for the worse, with the unemployment rate rising two ticks to 6.9%, with consensus expecting a one notch increase, noted CIBC after Friday's release of the Labour Force Survey (LFS).

There were 7,400 job gains in April, close to expectations of a 5,000 increase but the average pace of job losses over the last three months is 8,000, sai the bank.

The pain was clearly due to trade tensions with the United States, pointed out CIBC. The largest drop in employment came in manufacturing (31,000) and wholesale and retail trade (-27,000). By type of work, part-time employment dipped while full-time partly recovered from last month's big drop.

The participation rate remained steady at 65.3%, as did wage growth for permanent workers (+3.5%).

Overall, the bank is seeing a job market that was weak heading into the trade war, now looking like it could soon buckle.

Friday's report supports the case for a Bank of Canada rate cut in June, added CIBC.