Canada’s unemployment rate fell to 6.6 per cent in May, down from 6.9 per cent in April, after employers added about 88,000 jobs, according to Statistics Canada. The increase was far stronger than economists’ expectations of just 10,000 new positions.
The gains were spread across industries and concentrated in full-time work. Construction was the biggest contributor, adding 27,000 jobs, while wholesale and retail trade lost 35,000 positions. Young workers aged 15 to 24 saw notable improvements, with more full-time opportunities compared to the difficult summer job market of 2025.
This rebound comes after a weak start to 2026. Between January and April, full-time employment had dropped by 111,000 jobs, leaving many worried about the labour market’s strength. At that time, unemployment among core-aged workers (25–54) was 6 per cent, while youth unemployment stood at 14.3 per cent.
Wage growth also slowed slightly in April, with average hourly pay for permanent employees rising 4.8 per cent year-on-year, compared to 5.1 per cent in March. This measure is closely watched by the Bank of Canada as an indicator of inflation pressures.
The May report suggests Canada’s job market is stabilising, with strong hiring in construction and better prospects for younger workers helping offset earlier declines. Still, uneven results across sectors show that challenges remain, especially in retail and trade.
Overall, the economy appears healthier than expected, with employers adding jobs amidst growing inflation concerns.