Canada’s Job Market Rebounds in May as Employment Rises by 88,000

Canada’s labour market showed a clear bounce in May, with Statistics Canada reporting an employment gain of 88,000 jobs, or 0.4 per cent.

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It was the first notable monthly increase since November 2025, following a net loss of 112,000 jobs over the first four months of 2026. The employment rate rose to 60.7 per cent, while the unemployment rate dropped to 6.6 per cent from 6.9 per cent in April.

The gains were spread across several age groups, industries and provinces, offering a more encouraging snapshot after a slower start to the year.

Full-time work drove the monthly increase. The number of people working full time rose by 154,000 in May, offsetting declines seen from January to April. Part-time employment moved in the opposite direction, falling by 66,000. Employment also increased in both the private sector, up 56,000, and the public sector, up 20,000.
Youth saw one of the stronger improvements. Employment among people aged 15 to 24 rose by 22,000, while the youth unemployment rate fell 0.9 percentage points to 13.4 per cent. Returning students also had a better start to the summer job season, with their unemployment rate at 18.0 per cent, down from 20.1 per cent in May 2025.

Core-aged workers also gained ground. Employment rose by 31,000 among women aged 25 to 54 and by 25,000 among men in the same age group. Their unemployment rates both declined by 0.4 percentage points, reaching 5.5 per cent for core-aged women and 5.7 per cent for core-aged men.
Construction led industry gains. The sector added 27,000 jobs, followed by information, culture and recreation, up 19,000, transportation and warehousing, also up 19,000, and accommodation and food services, up 17,000. Wholesale and retail trade fell by 35,000.
Ontario posted the largest provincial gain. Employment in Ontario rose by 42,000, while British Columbia added 25,000, Alberta added 14,000 and Prince Edward Island gained 1,200. Saskatchewan was the exception, losing 6,100 jobs.
Wages continued to grow, but at a slower pace. Average hourly wages rose 3.0 per cent year over year to $37.24 in May, compared with 4.5 per cent growth in April.