Key facts
- Canada's economy added 18,200 net jobs in June.
- The unemployment rate decreased to 6.5% from 6.6%.
- Job growth was primarily in part-time positions.
- Accommodation and food services saw a gain of 14,700 jobs.
- Wholesale and retail trade sectors increased employment by 16,400 jobs.
- Manufacturing and construction sectors collectively lost approximately 30,000 jobs.
- Average hourly wages for permanent employees rose by 3.7% in June.
Canada's economy added a net of 18,200 jobs in June, and the unemployment rate edged down to 6.5%, slightly beating analyst expectations. This follows a significant jump of 87,800 jobs in May. The stronger-than-expected figures suggest the economy is better absorbing the impact of U.S. tariffs than initially feared, although ongoing uncertainty surrounding North American trade agreement negotiations continues to constrain business investment.
The job gains in June were largely concentrated in part-time employment, with accommodation and food services adding 14,700 positions and wholesale and retail trade sectors gaining 16,400 jobs. Conversely, the manufacturing and construction sectors together lost close to 30,000 jobs.
The unemployment rate for youth aged 15-24 years fell to 12.7% from 13.4%, though it remains higher than the pre-pandemic average of 10.8%. After a sluggish start to the year, the job market has shown signs of stabilizing in the last two months.
Average hourly wages for permanent employees, a key metric for the Bank of Canada's inflation outlook, grew by 3.7% in June, an increase from 3.2% in May.