Canada’s labour market showed signs of slowing in May as the number of people collecting regular Employment Insurance (EI) benefits remained largely unchanged, even as unemployment edged higher compared with last year.
516,620 Canadians received regular EI benefits in May, a decline of 0.3 per cent, or 1,600 people, from the previous month. The new figure follows four months of growth earlier this year, after the number of beneficiaries rose by 6.6 percent, or 32,000. On a year-over-year basis, regular EI recipients increased by 44,000, up 9.2 per cent. The national unemployment rate reached 7.0 per cent in May, 0.7 percentage points higher than in May 2024.
The number of young workers aged 15 to 24 receiving EI fell by 1.7 per cent in May, while claims among men aged 25 to 54 dropped 1.3 per cent. Older women were the exception, with claims rising by 1.9 per cent. Compared to last year, all major demographic groups saw increases, up 10.8 percent, and women over 55, up 10.3 percent.
Ontario was the only province to record a notable decline, with the number of recipients falling 1.5 per cent, or 2,600 people. The drop offset part of April’s 3.6 per cent increase. Meanwhile, Saskatchewan saw a 1.7 percent rise after two months of little change, while Newfoundland and Labrador increased 1.3 percent and Prince Edward Island 1.5 percent. Year-over-year, Alberta posted the largest proportional gain, up 15.5 percent, followed by British Columbia at 13.5 percent, Ontario at 12.9 percent and Quebec at 5.8 percent.
The number of beneficiaries who last worked in business, finance and administrative occupations rose 3.3 per cent in May, marking the second consecutive monthly increase. Sales and service occupations were up 2.1 per cent for the fourth month in a row. However, claims fell 7.5 per cent among those previously employed in manufacturing and utilities, reversing some of the gains recorded earlier this year.
Compared with May 2024, the sharpest rise in EI recipients came from business, finance and administrative jobs, which increased 22 per cent. Sales and service roles were up 10.9 per cent, and trades, transport and equipment operator occupations climbed 5.1 per cent.
It is becoming increasingly common to see public frustration directed at federal policies, which critics say are failing to address Canada’s labour market challenges. Canada welcomed about 207,600 new permanent residents in the first half of 2025, even as more than 1.6 million Canadians remain unemployed. Critics argue that the government’s immigration strategy is intensifying competition for jobs, housing and healthcare. Concerns over affordability and strained public services are mounting, with polls showing nearly 60 percent of Canadians believe immigration levels are too high. While Ottawa has lowered its 2025 intake target to 395,000 from 500,000 and expanded a summer jobs wage-subsidy program to create 6,000 additional youth jobs, it still falls short of providing meaningful support for unemployed Canadians.
We will see how Prime Minister Mark Carney and his government handle these growing issues once they return from their sweet summer vacation.