{"id":61797,"date":"2025-07-11T12:41:23","date_gmt":"2025-07-11T12:41:23","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/07\/11\/canadas-unemployment-rate-drops-for-first-time-since-january\/"},"modified":"2025-07-11T12:41:23","modified_gmt":"2025-07-11T12:41:23","slug":"canadas-unemployment-rate-drops-for-first-time-since-january","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/07\/11\/canadas-unemployment-rate-drops-for-first-time-since-january\/","title":{"rendered":"Canada's unemployment rate drops for first time since January"},"content":{"rendered":"
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<\/p>\n

Canada\u2019s <\/p>\n

unemployment rate <\/p>\n

declined to 6.9 per cent in June, while the economy added 83,000 jobs, the bulk of which was in part-time work. <\/p>\n

Canada\u2019s jobless rate has been on a steady climb this year since U.S. President Donald Trump started his trade war, but June\u2019s unemployment rate marks the first decline since January, <\/p>\n

Statistics Canada said on Friday.<\/p>\n

In May, the unemployment rate peaked at seven per cent, its highest point since 2016 outside of the pandemic. <\/p>\n

Economists had expected the jobless rate to rise to 7.1 per cent. <\/p>\n

\"<\/p>\n

\u201cGiven the uncertainty hanging over the Canadian economy, many (including us) will be skeptical of this report,\u201d said Bank of Montreal economist Benjamin Reitzes, in a note. \u201cEven so, it appears that the economy is hanging in there for now, pending the result of ongoing trade negotiations.\u201d <\/p>\n

Employment increased by 34,000 in retail and wholesale trade and by 17,000 in healthcare and social assistance. Manufacturing, a sector that has been impacted the most by trade uncertainty, also added jobs during the month. Private sector employment increased by 47,000 and the public sector increased by 23,000. <\/p>\n

Statistics Canada said the layoff rate in June was unchanged from a year ago and remained low relative to historic averages outside of recessionary periods. <\/p>\n

\"<\/p>\n

The June jobs numbers is the last look the <\/p>\n

Bank of Canada<\/p>\n

gets at the labour market ahead of its <\/p>\n

interest rate decision<\/p>\n

on July 30. The central bank decided to pause its policy rate in April and June, citing ongoing trade uncertainty with the U.S. and hotter-than-expected core inflation as the main reasons. <\/p>\n

That uncertainty is likely to persist, with <\/p>\n

Trump this week threatening<\/p>\n

to impose a 35 per-cent tariff on Canadian goods starting on Aug 1. The U.S. president has also threatened a 50 per-cent tariff on copper, putting pressure on another Canadian industry. Prime Minister Mark Carney said Canada will work towards the revised deadline of Aug. 1 for a trade arrangement with the U.S. <\/p>\n

Last month, Bank of Canada governor Tiff Macklem said a trade deal between the U.S. and Canada remained \u201ccritical\u201d for jobs and growth and warned consumer prices would likely rise if tariffs are not lifted. <\/p>\n

Economists think Friday\u2019s job numbers will keep Canada\u2019s central bank on the sidelines at its next meeting. <\/p>\n

\u201cThe Bank of Canada gets its next kick at the can on July 30th,\u201d said Leslie Preston, economist with the Toronto-Dominion Bank, in a note. \u201cToday\u2019s jobs report is another tick in the resilience tally, but next Tuesday\u2019s June inflation report is likely to be the bigger factor in the bank\u2019s deliberations, given recent hotter-than-expected inflation readings.\u201d <\/p>\n

The employment rate, the proportion of the population 15 years and older who are employed, rose by 0.1 percentage points to 60.9 per cent during the month. <\/p>\n

Total hours worked rose by 0.5 per cent in June and were up 1.6 per cent compared to last year. Average hourly wages increased by 3.2 per cent on a year-over-year basis in June, following an increase of 3.4 per cent in May. <\/p>\n

Employment rose in Alberta, Quebec, Ontario and Manitoba, while Newfoundland and Labrador and Nova Scotia lost jobs. The city of Windsor, which has been particularly hard-hit by Trump\u2019s auto tariffs, recorded the highest unemployment rate among Canada\u2019s major cities at 11.2 per cent. <\/p>\n

The June jobs numbers is the last look the <\/p>\n

Bank of Canada<\/p>\n

gets at the labour market ahead of its interest rate decision on July 30. <\/p>\n