Canada’s Unemployment Rate Hits 6.9% on May
Canada’s Unemployment Rate Hits 6.9% on May
Statistics Canada released its Labour Force Survey on May 9, 2025, at 8:30 AM ET, shedding light on the latest shifts in the nation’s job market. The unemployment rate reached 6.9%, slightly above the forecasted 6.8% and up from the previous figure of 6.7%. The report, which sparked immediate reactions in financial markets, also revealed a net employment gain of 7,400 jobs, surpassing expectations of 4,100. Full-time employment saw a robust addition of 31,500 positions, offsetting a loss of 62,000 full-time jobs in the prior period, while part-time jobs declined marginally.
The data, announced at the start of the trading day, highlighted a complex economic environment shaped by global trade tensions, particularly U.S. tariffs impacting Canadian exports. Average hourly wages for permanent employees reached 3.5% year-over-year growth, unchanged from the previous figure, signaling steady but unspectacular income growth for workers. The labor force participation rate held steady at 65.2%, indicating no significant change in the number of Canadians actively seeking work. Sectoral trends showed gains in professional services and healthcare, while trade-sensitive industries like manufacturing faced ongoing challenges, with some plants reporting temporary shutdowns.
For Canadian workers, the uptick in unemployment underscores persistent economic uncertainty, particularly in regions like Ontario, where the jobless rate climbed to 7.8%. Toronto’s unemployment rate reportedly exceeded 10%, raising concerns about urban economic resilience. Economists noted that the Bank of Canada, which recently cut its policy rate to 2.75%, may face pressure to further ease monetary policy at its June 11, 2025, meeting to cushion the impact of trade disruptions. The next Labour Force Survey, set for June 6, 2025, will provide further clarity on whether these trends persist or stabilize amid evolving global pressures.
