Employment numbers nearly stays, says report
Canada’s unemployment rate rose to 7.0% in May—the highest level since September 2016, excluding the pandemic years—according to the latest Labour Force Survey released by Statistics Canada (StatCan).
The increase of 0.1 percentage points marks the third consecutive monthly rise, according to the report.
In April, the unemployment rate stood at 6.9%.
StatCan’s latest data underscore the growing challenges faced by Canadians seeking employment.
The number of unemployed individuals climbed to 1.6 million, up 13.8% compared to the same time last year. Those looking for work in May had been unemployed for an average of 21.8 weeks, an increase from 18.4 weeks in May 2024. Nearly half of all unemployed Canadians (46.5%) had not worked in the previous year or had never worked, Statistics Canada noted.
Among returning students aged 15 to 24, the unemployment rate in May stood at 20.1%—an increase of 3.2 percentage points from May 2024 (not seasonally adjusted).
“The unemployment rate for this group has trended up each May from the record low of 11.4% in May 2022, which was observed during a tight labour market,” said StatCan.
“The unemployment rate for returning students aged 15 to 24 in May 2025 was comparable to the rates last observed in May 2009 (20.0%) and May 1999 (20.1%) (excluding the pandemic years of 2020 and 2021),” according to the report.
Here’s the unemployment rate among provinces:
Meanwhile, overall employment held steady for the second consecutive month in May, with a marginal increase of 8,800 positions (+0.0%). Growth in full-time employment (+58,000; +0.3%) was offset by a decline in part-time work (-49,000; -1.3%).
Since January, there has been virtually no net employment growth, following strong gains between October 2024 and January 2025 (+211,000; +1.0%), according to StatCan.
In terms of sectoral performance, wholesale and retail trade posted the largest employment gains in May. Smaller increases were also observed in information, culture and recreation; finance, insurance, real estate, rental and leasing; and health care and social assistance.
On the other hand, public administration recorded the most significant job losses, followed by accommodation and food services; transportation and warehousing; and business, building and other support services.
The number of payroll employees in Canada dropped by 54,100 (-0.3%) to 18,188,000 in March, according to a previous StatCan report.
