Statistics Canada data reveals a mixed labour market picture, with stalled payroll growth and rising average weekly earnings
Payroll employment across Canada was nearly flat in June 2026, rising by just 4,800 positions. That is a sharp deceleration from the 45,000 gain recorded in May, according to Statistics Canada's Survey of Employment, Payrolls and Hours (SEPH).
On a year-over-year basis, payroll employment was up by 155,000, or 0.8 per cent.
Average weekly earnings climbed 3.4 per cent year over year to $1,344 in June 2026. This followed a 3.3-per-cent increase in May, according to Statistics Canada. Month over month, earnings edged up 0.6 per cent.
Average weekly hours held steady at 33.4 hours, unchanged from both the prior month and June 2025.
For HR leaders managing compensation reviews, the sustained pace of earnings growth means cost-of-labour assumptions built into 2026 budgets may require revision. Those working through similar dynamics earlier this year will find relevant context in the February 2026 data. Average weekly earnings rose even as payroll employment fell that month, a pattern now repeating.
Manufacturing sheds payroll employment
The sharpest sectoral story in June came from manufacturing, which declined by 7,200 positions – a 0.5-per-cent drop. This ended a cumulative gain of 18,600 jobs built up from December 2025 to May 2026, according to Statistics Canada.
Declines were recorded across 11 of 21 subsectors. Machinery manufacturing fell 1,600 positions, fabricated metal manufacturing fell 900, and primary metal manufacturing fell 700.
Despite the payroll employment retreat, manufacturing job vacancies continued trending upward. The vacancy rate in the sector reached 2.5 per cent, up 0.4 percentage points year over year. That gap between falling payrolls and rising vacancies signals ongoing recruitment challenges for people leaders in the sector.
HR teams in retail and hospitality also dealt with job losses in June. Retail payroll employment fell 3,900 after three consecutive months of growth totalling 24,000. Accommodation and food services shed 6,100 jobs, reversing gains from April and May.
Not all sectors retreated in June. Public administration added 10,600 payroll positions – a 0.8 per cent monthly gain – marking its fourth consecutive month of growth, according to Statistics Canada.
Since February 2026, public sector payrolls have expanded by 39,600, or 3.0 per cent. Statistics Canada attributed the acceleration to the hiring of census enumerators and crew leaders for federal roles.
Construction added 2,000 positions in June, continuing a cumulative three-month gain of 5,600. Year over year, construction payrolls grew 1.5 per cent, with non-residential building and highway construction among the strongest contributors.
Vacancies edge higher but ratio improves
Job vacancies edged up by 10,500 in June to reach 509,100, according to Statistics Canada. Year over year, vacancies were up 2.8 per cent.
The job vacancy rate held at 2.8 per cent, unchanged from both May 2026 and June 2025. The ratio of unemployed persons to job vacancies fell to 2.9 in June, down from 3.0 in May and 3.1 in June 2025. A reduction in the number of unemployed persons, rather than a jump in vacancies, drove the improvement.
Across provinces, British Columbia recorded the highest vacancy rate at 3.2 per cent. Newfoundland and Labrador posted the lowest at 2.0 per cent. New Brunswick was the only province to see a month-over-month decrease, with vacancies falling 15.9 per cent.
The provincial divergence echoes the fractured picture identified in Statistics Canada's April 2026 payroll data showing sector and regional splits in Canadian employment.
