Canada Employment Research Brief

Economy ekes out job gains. Canada added 8,800 jobs in May, in contrast to the fall in employment expected, highlighting resilience amid ongoing trade uncertainties. Meanwhile, slowing immigration meant that monthly population growth was at its lowest in four years. Yet May’s hiring was not enough to prevent a rise in the unemployment rate to 7.0 per cent – its highest since 2016. Looking ahead, Canada’s labour market is likely to remain sluggish, as tariff risks curb business investment and hiring intentions. Forecasts suggest a peak unemployment rate around 7.5 per cent. Green shoots may be emerging, however, reinforcing some views that the labour market is softening but not collapsing. Not only is the nation set to remove interprovincial trade barriers by July, but some reports also indicate that Canada and the United States are nearing a trade and security agreement. Although slowing global economies do provide some short-term headwinds, long-term economic growth prospects are improving