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Canada failed to generate any new jobs in April, but the unemployment rate stayed at the lowest in four decades and wages accelerated to signal a tight labour market.

Canada lost 1,100 jobs during the month, Statistics Canada reported Friday, just the second time since mid-2016 the economy didn’t add new positions. Economists had forecast a 20,000 job gain.

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The numbers fit a pattern over the past four months that indicate a labour market hitting capacity — with the labour force stalling and employees seeing larger wage gains.

The trend poses a major challenge to the Bank of Canada, since how quickly the economy expands without triggering wage gains and inflation is a key question for policy makers. Even with last year’s surge in hiring and wages gaining, the central bank has said pockets of untapped labour market slack remain that could limit wage and price pressures.

Since the start of the year, Canada’s labour force has shrunk by 25,500 and employment is down by 41,400.