Canada’s unemployment rate fell to 6.5% in June, down from 6.6% in May, as the economy added approximately 18,000 new jobs, according to Statistics Canada.
The latest employment figures indicate continued stability in Canada’s labour market, although job growth slowed compared with the previous month. In May, the country recorded a much larger increase of approximately 88,000 jobs.
Much of the employment growth in June came from part-time work and private-sector employment. Job gains were reported in industries including accommodation and food services, as well as wholesale and retail trade. However, some sectors, including manufacturing, experienced employment declines.
Improved employment among young people also contributed to the overall growth. Employment conditions for Canadians aged 15 to 24 showed signs of improvement, with the youth unemployment rate falling to 12.7%. However, youth unemployment remains higher than levels recorded before the COVID-19 pandemic.
Canada’s employment rate also increased slightly by 0.1 percentage points to 60.8% in June. Economists view the decline in unemployment and continued job creation as encouraging signs for the Canadian economy.
However, concerns remain about the long-term strength of the labour market, as a significant portion of the new jobs were part-time positions. High living costs, economic uncertainty, trade tensions, and the potential impact of U.S. tariffs could also influence employment growth in the coming months.
The decline in the unemployment rate and the addition of new jobs are positive developments for Canada’s economy. However, economists will continue to monitor future employment reports to determine whether the labour market can maintain steady and sustainable growth.