In June, Canada witnessed an increase in employment of 60,000 individuals, representing a growth rate of 0.3%. This rise was primarily driven by gains in full-time work, which saw an increase of 110,000 positions or 0.7%. However, alongside this positive trend, the unemployment rate also experienced a slight increase to 5.4%, rising by 0.2 percentage points due to a greater number of individuals actively seeking employment opportunities.
The employment growth in June was concentrated among specific demographics, with notable gains observed among young men aged 15 to 24, who saw an increase of 31,000 employment positions. Similarly, men aged 25 to 54 also experienced a rise of 31,000 jobs. In contrast, employment levels for women across all age groups remained relatively stable during the month.
Among the provinces, Ontario recorded significant employment gains with an increase of 56,000 positions. Nova Scotia and Newfoundland and Labrador also saw positive growth with respective gains of 3,600 and 2,300 jobs. On the other hand, Prince Edward Island witnessed a decline of 2,400 employment positions. The remaining provinces displayed minimal variation in their employment levels.
In terms of industries, notable employment increases were observed in sectors such as wholesale and retail trade (+33,000), manufacturing (+27,000), health care and social assistance (+21,000), and transportation and warehousing (+10,000). However, declines in employment were recorded in construction (-14,000), educational services (-14,000), and agriculture (-6,000).
Average hourly wages experienced a year-over-year increase of 4.2%, amounting to a rise of $1.32 to reach $33.12 in June. This followed a previous increase of 5.1% in May. Total hours worked remained relatively unchanged during the month, but showed a 2.0% increase compared to the previous year.
The rise in employment, driven by an increase in full-time work, comes after a period of relatively minimal change in employment levels. The employment rate, representing the proportion of the population aged 15 and older who are employed, slightly increased by 0.1 percentage points to 62.2% in June.
Among core-aged men (25 to 54 years old), employment increased by 31,000 (+0.5%) in June, continuing a positive trend over the past three months. However, employment growth among core-aged women has slowed in recent months, with an average increase of 7,000 per month since February 2023, compared to 24,000 per month from September 2022 to January 2023.
Several industries experienced notable employment growth, including wholesale and retail trade, health care and social assistance, manufacturing, and transportation and warehousing. Conversely, the construction, educational services, and agriculture sectors saw declines in employment.
The unemployment rate rose to its highest level since February 2022, reaching 5.4% in June. Despite these increases, the unemployment rate in Canada remains below its pre-pandemic average of 5.7% from February 2020.
Students entering the summer job market experienced fewer employment opportunities compared to previous years. The employment rate among female returning students aged 15 to 24 decreased, while male returning students witnessed little change.
Employment increases in Ontario, Nova Scotia, and Newfoundland and Labrador contributed to the overall growth in Canada, while Prince Edward Island experienced a decline. Employment in Quebec remained relatively unchanged for the fifth consecutive month.
The rise in employment, particularly in full-time work, signals positive momentum for the Canadian labor market. However, ongoing efforts are needed to address industry-specific challenges and support continued economic recovery.
