Canada adds 18,200 jobs in June, jobless rate falls to 6.5%
By Erik Hertzberg
(Bloomberg) — Employment in Canada rose 18,200 in June and the unemployment rate fell to 6.5% as the country’s labour market shows some signs of tightening.
The employment gain was driven by the service sectors and in part-time work, Statistics Canada reported on Friday. It follows an 87,800 increase in jobs in May.
Economists surveyed by Bloomberg were expecting a modest 10,000 employment gain, and for the jobless rate to hold steady at 6.6%.
Retail and wholesale trade led gains, rising 16,400 on the month. Accommodation and food services rose 14,700. At the same time, the goods-producing sectors showed weakness and shed 43,700 jobs, led by a 16,800 loss in the manufacturing sector.
The participation rate held at 65% in June, and the employment rate rose to 60.8%. The number of public sector employees fell 30,500, the biggest monthly decline since 2015 outside the pandemic. Private sector employment rose 31,600.
The data add to evidence Canada’s economy is rebounding in the second quarter after back-to-back quarterly contractions, and suggest that while the country’s labor market remains soft, it’s not rapidly worsening.
The numbers are also likely to cement expectations for a hold from the Bank of Canada next Wednesday.
There was also further tightening in the job market for young people, with the youth unemployment rate falling 0.7 percentage points to 12.7%, the lowest since May 2024.
Wage growth for full-time permanent employees increased by 3.7% annually, up from 3.2% in May.
–With assistance from Mario Baker Ramirez.
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Last modified: July 10, 2026
