Canada's labour market posted modest net job growth in June as 18,200 positions were added and the national unemployment rate edged down to 6.5%, official data showed on Friday. The outturn slightly exceeded forecasts and continued the recent momentum after a larger increase in May.
Economists had expected a smaller gain for June; the consensus forecast was for roughly 10,000 new jobs and an unemployment rate of 6.6%, unchanged from May. May itself saw a substantial rise of 87,800 jobs, and June's figures reinforced the view that the labour market has been absorbing some external pressures better than feared.
That resilience comes even as trade uncertainty persists. Negotiations over a North American trade agreement and the shadow of U.S. tariffs remain cited constraints on business investment, and those factors continue to temper the outlook for some sectors.
Statistics Canada reported that June's gains were heavily weighted toward part-time work, with part-time employment up by a net 17,500 positions. Full-time employment was largely unchanged for the month. The data showed the largest contributors to job growth were accommodation and food services and wholesale and retail trade.
Accommodation and food services, which comprises just over 5% of total national employment, added 14,700 jobs in June, marking its third consecutive monthly increase. Wholesale and retail trade, accounting for almost 14% of total employment, was the single largest contributor to net job creation in June with gains of 16,400 positions.
At the same time, manufacturing and construction recorded the largest losses, with the two sectors together shedding close to 30,000 jobs. Those declines offset a portion of the gains recorded in the service-oriented categories.
The unemployment rate for youth aged 15-24 improved, falling to 12.7% in June from 13.4% in May. Statistics Canada noted that despite the recent improvement over the past two months, youth unemployment remains above the pre-pandemic average of 10.8% observed over 2017-2019.
On a broader cycle, the labour market showed signs of stabilization after a weak start to the year through April, with the most recent two months indicating firmer footing. Average monthly job gains so far this year remain flat, compared with an average of around 18,000 per month in 2025 and roughly 35,000 per month in 2024.
Wage metrics also moved higher in June. Average hourly wages of permanent employees, a statistic closely watched as an indicator of inflationary pressure, rose 3.7% year-on-year in June, up from a 3.2% gain in May.
Separately, the economy entered a technical recession at the end of the first quarter on an annualized basis, defined by two consecutive quarters of contraction, but gross domestic product rebounded more than expected in April.
Some forecasters had anticipated stronger employment gains in certain provinces because of temporary and part-time hiring linked to the hosting of the FIFA World Cup in cities such as Toronto and Vancouver. Statistics Canada attributed part of the June uptick to temporary and part-time activity within metropolitan areas.
Contextual note: The June report paints a mixed picture of Canada’s labour market - service and retail sectors led gains while goods-producing industries saw notable job losses, and wages continued to trend upward.