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Rising Trade Tensions Already Impacting Canada’s Labour Market

From January to April 2025, employment declined significantly in several trade-exposed sectors, with manufacturing alone shedding over 42,000 jobs. Notable losses were also seen in agriculture and business support services. These declines suggest early impacts of rising trade tensions, particularly in industries tied to cross-border supply chains and export markets. In contrast, more domestically oriented or publicly funded sectors – such as public administration and finance – saw strong employment gains, helping to offset broader losses in the economy.

With additional layoffs already hitting the manufacturing sector in May, now is the time to consider how Canada can protect its manufacturing base, support workers, and attract future investment in its auto sector. Learn how in this C.D. Howe Institute research paper.

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