Canada’s job market saw an increase in employment in June, but the gains appear to do little to shift the underlying economic pressures many workers continue to face. The national unemployment rate fell slightly to 6.9 per cent, down just 0.1 points from May.
While the figure suggests improvement, the data beneath it offers a more cautious picture. Most of the 83,000 jobs added in June were part-time, and long-term unemployment continues to rise. Youth unemployment remains troublingly high, and regional disparities persist.
The growth was largely in part-time positions, which rose by 70,000 (+1.8 per cent). Full-time employment showed only limited growth, raising questions about job quality and stability.
Men and women aged 25 to 54 accounted for most of the gains. Core-aged men saw an increase of 62,000 positions, reversing losses in May, while employment among core-aged women grew by 29,000. However, employment rates for both groups remain relatively unchanged year over year.
At the same time, job opportunities for younger Canadians remained stagnant. The youth unemployment rate stayed at 14.2 per cent—well above its pre-pandemic average. Returning students faced particular difficulty, with unemployment among those aged 15 to 24 rising to 17.4 per cent, the highest June rate since 2009.
Job growth was not evenly distributed across sectors. Retail trade, often a source of low-wage and part-time employment, led the way with 38,000 jobs added. Health care and social assistance posted a smaller increase of 17,000 positions.
Other major industries showed minimal movement. Agriculture lost 6,000 jobs, marking the only notable sectoral decline.
Wages rose 3.2 per cent year over year to $36.01 per hour. Though wage growth continues, it does little to counterbalance inflationary pressure on household budgets, especially when many new jobs are part-time and precarious.
Job gains were concentrated in four provinces: Alberta, Quebec, Ontario, and Manitoba. Alberta posted the strongest increase, adding 30,000 jobs and lowering its unemployment rate to 6.8 per cent. But even in provinces that saw gains, the picture remains far from reassuring.
In Ontario, the unemployment rate held at 7.8 per cent, while Quebec’s rose to 6.3 per cent despite job gains. The sharpest concern was in Windsor, Ont., where the unemployment rate hit 11.2 per cent.
Employment fell in Newfoundland and Labrador and Nova Scotia, but their unemployment rates remained virtually unchanged. With some provinces showing gains and others slipping, the overall national picture remains fragmented.
Long-term unemployment—lasting 27 weeks or more—continued to climb. Over one in five unemployed Canadians now fall into this category, up from 17.7 per cent a year ago.
Although the layoff rate has held steady, the rising share of Canadians unable to find work over the long term points to systemic barriers that short-term monthly gains fail to address.
Despite the federal government’s efforts to frame June’s numbers as progress, the broader reality remains uneven. A small dip in the unemployment rate cannot offset the fact that nearly 1.6 million Canadians remain out of work.
It is worth noting that the federal government continues to speak optimistically about immigration, while many Canadians are ready and willing to work. We have repeatedly called for a new approach, a centralized national employment-matching system that connects unemployed Canadians with employers before expanding reliance on foreign labour.
We’ll see what the future brings while tired politicians head off on their summer break.