Canada Employment Research Brief

Hiring returned in force last month. Canada’s job market strengthened in May, with the economy adding 88,000 jobs — the largest monthly gain since late 2024 and well above consensus expectations. The increase was driven entirely by full-time employment, which rose by 154,000 positions, offsetting much of the weakness recorded earlier in the year. At the same time, part-time employment declined. Hiring gains were also broad-based across age cohorts and industries, led by construction, transportation and warehousing, and information and recreation services. After shedding 112,000 jobs over the first four months of 2026, May’s gain reduced year-to-date losses to roughly 24,300 positions. The employment rate also rose 20 basis points to 60.7 per cent, marking its first monthly increase since November, while the unemployment rate fell 30 basis points to 6.6 per cent.