Canada adds 18,200 jobs in June, unemployment rate edges down
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- Canada's economy added a net 18,200 jobs in June, beating Reuters analyst forecasts of 10,000 and following May's 87,800 jump, with the unemployment rate edging down to 6.5% from 6.6%.
- Part-time employment drove the gains, rising by 17,500 jobs, while full-time employment was largely unchanged — economists had flagged expected hiring tied to Toronto and Vancouver hosting the FIFA World Cup.
- Accommodation and food services (+14,700) and wholesale and retail trade (+16,400) led sector gains, while manufacturing and construction together shed roughly 30,000 jobs.
- Youth unemployment (ages 15-24) fell to 12.7% from 13.4%, though Statistics Canada noted it remains above the pre-pandemic 2017-2019 average of 10.8%.
- Average hourly wages for permanent employees rose 3.7% year-over-year in June, up from 3.2% in May — a metric the Bank of Canada tracks closely for inflation expectations.
- Despite two consecutive months of gains, average monthly job gains year-to-date remain flat, lagging behind roughly 18,000 per month in 2025 and 35,000 per month in 2024.
Why it matters: The beat over estimates adds to evidence that Canada's economy is absorbing U.S. tariffs better than feared, supporting the narrative that the Q1 technical recession is behind it. But wage growth accelerating to 3.7% from 3.2% hands the Bank of Canada a stickier inflation signal just as it weighs its next rate decision.
