Canada’s job growth slowed in June as the unemployment rate ticked down 0.1 percentage points to 6.5 per cent, following a surge of employment in May.
This is the second consecutive monthly decline, according to data from Statistics Canada on Friday, following a 0.3 percentage point decline in May.
On a year-over-year basis, the unemployment rate was down by 0.4 percentage points in June.
The economy added about 18,000 jobs in June, mostly driven by part-time work, which increased by about 17,500 jobs, or 0.5 per cent. Full-time employment was unchanged during this time period, Statistics Canada said.
The accommodation and food services sector gained the most jobs, adding 15,000 positions, or 1.2 per cent, in June, the third consecutive monthly increase. On an annualized basis, employment in this sector was up by 39,000 jobs, or 3.4 per cent.
However, job losses were recorded in the manufacturing sector, which shed 17,000 positions in June, a 0.7 per cent decrease that offset an increase in May. Since January 2025, manufacturing has lost 61,000 jobs, or 3.2 per cent, as United States tariffs have taken a toll on the sector.
Canada’s public sector lost about 31,000 jobs, or 0.7 per cent, since May, but employment edged up by about 32,000 jobs, or 0.2 per cent, in the private sector.
Overall, job growth over the past 12 months was concentrated in the private sector, which added 94,000 positions year over year, an increase of 0.7 per cent.
Youth unemployment fell by 0.7 percentage points to 12.7 per cent in June, following a 0.9 percentage point decline in May. Statistics Canada attributed this to a more favourable student summer job market compared with 2025, as well as the uptick in part-time work.
Despite the recent declines, the youth unemployment rate is still higher than the pre-pandemic average of 10.8 per cent from 2017 to 2019.
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Canada's unemployment rate ticks down to 6.5%
2026-07-10 12:45:47
