Canada adds 87,800 jobs in May
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Canada’s labour market delivered a major surprise in May, adding 87,800 jobs while the unemployment rate fell to 6.6%, down from 6.9% in April. Economists had expected only about 10,000 new jobs, making the report far stronger than anticipated. Statistics Canada’s official release rounded the increase to 88,000 jobs and said the employment rate rose to 60.7%.
The report comes just days before the Bank of Canada’s next interest rate announcement on June 10, giving policymakers a stronger labour-market reading to weigh against concerns about slower growth, trade uncertainty and pressure from U.S. tariffs.
The gains were concentrated in full-time work, with full-time employment rising by about 154,000 positions while part-time work declined. Construction, information, culture and recreation, transportation and warehousing, and accommodation and food services posted notable gains. Wholesale and retail trade, however, lost about 35,000 positions.
The numbers may ease recession fears, but they also make an immediate rate cut less likely. Wage growth for permanent employees slowed to 3.2% in May from 4.8% in April, which may reassure the central bank on inflation pressures. Still, for households, the message is mixed: job prospects look better, but relief on borrowing costs may take longer to arrive.
