Canada's unemployment rate dropped to 6.6 percent in May, while the economy added 88,000 jobs, marking the first significant employment gain since November 2025, according to Statistics Canada data released on Friday.
Full-Time Employment Surges
The increase was driven by full-time work, which grew by 154,000 positions. In contrast, part-time work declined by 66,000 positions. This shift underscores a strengthening labor market as businesses expand their workforce.
Reversal of Earlier Losses
May's job gains follow a net decline of 112,000 jobs over the first four months of the year. In April, Canada lost 18,000 jobs, pushing the unemployment rate to 6.9 percent. The unemployment rate had previously stood at 6.7 percent in March.
Unemployment Still Above Pre-Pandemic Levels
Despite the positive news, the unemployment rate remains elevated compared to pre-pandemic averages of around 6 percent. However, it is below the peak of 7.1 percent reached in August and September 2025.
Economists are cautiously optimistic, noting that the labor market is showing signs of recovery after a sluggish start to the year. Further details are expected to emerge as more data becomes available.
