Canada Hits Major Employment Milestone: Job Market Rebounds with 83,000 New Jobs and Unemployment Falls to 6.9%
Canada’s labour market is bouncing back stronger than expected, with June 2025 marking a significant turning point in the country’s post-pandemic economic recovery.
According to the latest Labour Force Survey released by Statistics Canada, employment surged by 83,000 new jobs, and the unemployment rate dropped to 6.9%, its lowest level in months. This positive trajectory points to renewed momentum across sectors, provinces, and age demographics.
Employment Soars: Signs of a Resilient Economy
Canada added 83,000 new jobs in June, representing a 0.4% increase in overall employment. This is the first major monthly gain since January, largely fueled by part-time job growth which alone contributed 70,000 positions (+1.8%). The employment rate ticked up to 60.9%, reversing earlier declines seen in spring.
- Private sector: +47,000 jobs (+0.3%)
- Public sector: +23,000 jobs (+0.5%)
- Self-employment: Remained steady
The data confirms that employers are actively hiring, and businesses are expanding operations.
Unemployment Rate Declines to 6.9%: Stability Returns
After months of concern, the unemployment rate dropped by 0.1 percentage points from May. While 6.9% is still higher than pre-pandemic lows, it marks a positive turnaround after three months of upward movement.
Although this is an encouraging sign, long-term unemployment remains an issue:
- 1 in 5 unemployed Canadians (21.8%) have been jobless for 27 weeks or more.
Core Working-Age Canadians Power Job Gains
The strongest employment growth came from core-aged workers (25–54 years):
- Men: +62,000 jobs (+0.8%), with a job rate of 86.6%
- Women: +29,000 jobs (+0.4%), hitting a record 80.3% employment rate
These figures showcase Canada’s prime workforce driving productivity, while employment among youth and older workers remained relatively unchanged.
Industry Insights: Retail, Healthcare & Public Sector Shine
The largest employment increases were concentrated in:
- Retail Trade: +38,000 jobs (+1.7%), showing strong consumer confidence
- Healthcare & Social Assistance: +17,000 jobs (+0.6%), responding to population aging
- Public Administration: +21,000 jobs (+1.7%)
However, Agriculture saw a drop of 6,000 jobs (-2.6%), reflecting seasonal and regional challenges.
Provinces in the Spotlight: Alberta, Ontario & Quebec Lead the Pack
Job growth was uneven, with four provinces standing out:
- Alberta: +30,000 jobs (+1.2%), with the unemployment rate falling to 6.8%
- Quebec: +23,000 jobs (+0.5%) despite unemployment rising slightly to 6.3%
- Ontario: +21,000 jobs (+0.3%) holding steady at 7.8%
- Manitoba: +8,500 jobs (+1.2%) with unemployment dropping to 5.5%
Conversely, Nova Scotia and Newfoundland & Labrador recorded job losses.
Wages on the Rise: Paychecks Outpace Inflation
Canadian workers are seeing stronger earnings:
- Average hourly wage: Up 3.2% year-over-year to $36.01
- Hours worked: Increased by 0.5% in June, year-over-year growth of 1.6%
This means that not only are more people working, but they’re earning more than they did last year, giving workers more purchasing power and driving consumer spending.
Youth and Students Still Face Barriers
Despite overall growth, young Canadians are struggling:
- Youth (15–24) unemployment: Holding at 14.2%, higher than pre-pandemic levels
- Students (15–24): Unemployment rose to 17.4%, the highest since 2009 (excluding the pandemic)
- Teenagers (15–16): Unemployment at a concerning 27.8%
These figures highlight the persistent challenges for young and returning students in accessing summer and entry-level jobs.
Long-Term Joblessness: A Silent Struggle
While job creation is up, the number of long-term unemployed Canadians has grown by 9.0% year-over-year, now totaling 1.6 million.
This emphasizes the need for retraining, upskilling, and regional support programs to reintegrate displaced workers.
What This Means for Canada’s Future
The June 2025 Labour Force Report paints a hopeful picture: Canada’s economy is growing, industries are hiring, and wages are increasing. Yet, challenges remain—particularly for youth, rural workers, and long-term unemployed.
Canada must continue to invest in targeted economic strategies, workforce development, and inclusive hiring practices to sustain this upward trajectory.
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