Canada’s labour market changed little in June as employers added 18,000 jobs, enough to trim the unemployment rate to 6.5% but not enough to signal broad-based hiring across the economy. Manufacturing continued to shed workers, while employment gains were concentrated in accommodation and food services.
Employment rose 0.1% in June after a gain of 88,000 jobs in May. The employment rate increased 0.1 percentage point to 60.8%, returning to its January level, while the labour force participation rate held steady at 65.0%.
The unemployment rate declined for a second straight month, slipping from 6.6% in May to 6.5% in June. The job-finding rate improved to 24.3% from 21.3% a year earlier, while the layoff rate remained unchanged at 0.6%.
Employment gains were not evenly distributed across age groups. Youth employment increased by 33,000, while another 33,000 jobs were added among people aged 25 to 54. Employment among Canadians aged 55 and older fell by 47,000, pushing that group’s unemployment rate up to 5.2%.
The youth unemployment rate fell 0.7 percentage points to 12.7%, largely because of an increase in part-time work. Despite the improvement, it remained above the 10.8% average recorded before the pandemic between 2017 and 2019.
The summer job market also improved for students returning to school in the fall. The unemployment rate for returning students aged 15 to 24 was 15.3%, down from 17.4% a year earlier. Older students benefited the most, with the unemployment rate falling to 8.2% among those aged 20 to 24. For students aged 15 and 16, unemployment climbed to 30.6%, indicating many were still looking for their first summer job.
Manufacturing lost 17,000 jobs in June, reversing most of the gains recorded in May. Employment in the sector has declined by 61,000 since January 2025, a period Statistics Canada said coincided with tariff-related uncertainty. Agriculture lost 7,600 jobs, while utilities employment fell by 7,300.
Accommodation and food services posted the largest increase, adding 15,000 jobs for a third consecutive monthly gain. Most of the growth occurred in Quebec and Ontario. On a year-over-year basis, employment in the sector was up 39,000, or 3.4%.
Employment among private-sector workers rose by 32,000 in June after an increase of 56,000 in May. Public-sector employment declined by 31,000, while the number of self-employed workers was little changed. Over the past 12 months, private-sector employers accounted for nearly all of the country’s net employment growth.
Provincial results were mixed. Nova Scotia added 4,800 jobs and Saskatchewan gained 2,900. Employment was little changed in Ontario and British Columbia after both provinces posted gains in May. Quebec added 14,000 jobs for a second consecutive month following sharp losses earlier this year.
Ontario’s unemployment rate held at 7.0%. British Columbia’s fell to 6.5%, while Quebec’s remained at 5.4%. Nova Scotia’s unemployment rate declined to 6.5%, and Saskatchewan’s held at 6.1%.
Average hourly wages rose 3.3% from a year earlier to $37.20, following annual growth of 3.0% in May.
Separate quarterly estimates for the territories showed unemployment continued to rise in Yukon and the Northwest Territories. Yukon recorded a 7.3% unemployment rate in the second quarter, the highest since 2021, while the Northwest Territories reached 8.1%. Nunavut’s unemployment rate was 11.6%, below the peak reached late last year but still well above recent annual averages.