Skip to main content

Scroll Down

Special Report

Canada Employment
Research Brief

June 2024

Labour Market Continues to Loosen;
Wage Growth Remains a Risk for Central Bank

Jobs report shows mixed results. Canada’s economy added 27,000 jobs in May. While this headline reading was strong, underlying details pointed to further loosening in the employment market. The unemployment rate increased 10 basis points to 6.2 per cent as job gains were not able to keep pace with surging population growth. This put the jobless rate 140 basis points above the post-pandemic low and up nearly 100 basis points compared to a year ago. In addition, monthly gains in hours worked eased, and job growth was primarily driven by a 62,000-position increase in part-time labour. In contrast, full-time employment fell by 35,000. Nevertheless, despite further signs indicating an easing labour market, annual wage growth accelerated to 5.1 per year over year in May, up from the 4.7 per cent reading observed in April. As a result, the Bank of Canada may take a more gradual approach in lowering its overnight rate. 

Related Research

Back to top