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Nomura Sees Bank of Canada Keeping Rate on Hold This Year After Poor April Labor Market

BY MT Newswires | ECONOMIC | 08:49 AM EDT

08:49 AM EDT, 05/11/2026 (MT Newswires) -- The details of the Canadian Labour Force Survey (LFS) for April that were released on Friday were weaker than the headline figure suggests, said Nomura.

Jobs fell by 17,700 in April.

A sharp decline in full-time jobs was only partly offset by an increase in part-time jobs, noted the bank. Headcount reductions were concentrated in the most cyclically sensitive sectors.

The unemployment rate edged higher to 6.9%, while Nomura expected 6.7%, as labor force growth outpaced job creation.

Details about youth unemployment and long-term unemployment were also "concerning," stated the bank.

Overall, the report suggests that labor market slack persists and that the BoC is likely to keep its policy rate on hold, maintaining an accommodative stance through 2026, according to Nomura.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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