Trump's actions have hit Canada hard. Unemployment rate hits 9-year high

Unemployment stood at 7 per cent at the end of May, down from 6.9 per cent in April, marking the third consecutive monthly increase, Statistics Canada said. The office said the total number of unemployed people in May was almost 14 per cent higher than a year earlier .

This was mainly due to almost flat employment growth in the face of a growing population, with no large- scale layoffs .

This level of unemployment was last recorded in September 2016 after excluding unemployment from the coronavirus era, Statscan reported.

- People are having greater difficulty finding work in the current labor market, the office noted.

Analysts polled by Reuters had forecast the unemployment rate would be at that level because of the impact of U.S. tariffs on Canada. They estimated that total employment would fall by 12,500.

According to experts , Canadian unemployment reflects the actions of our southern neighbor.

Trump imposed tariffs on various Canadian products in March, then on steel and aluminum, and then on cars in April. That has already led to fewer new jobs and fewer layoffs.

The Bank of Canada said the tariffs and confusion about their scope and reach have created uncertainty that is harming investment, hiring intentions and the risk of job losses, and that this trend is likely to continue.