Canada unemployment rate edges up to 7% in May

Canada unemployment rate edges up to 7% in May

The Canadian unemployment rate has risen to 7.0% in May, marking the highest level since 2016, according to the latest Labour Force Survey [1]. This increase of 0.1 percentage points from April is the third consecutive monthly rise, with the unemployment rate having climbed by a combined total of 0.4 percentage points since February.

The employment rate, which measures the proportion of the population aged 15 and older who are employed, held steady at 60.8% in May. Employment was little changed overall, with an increase of 8,800 (+0.0%) in total employment. However, there were notable changes in specific sectors. Employment rose in wholesale and retail trade (+43,000; +1.5%), information, culture and recreation (+19,000; +2.3%), finance, insurance, real estate, rental and leasing (+12,000; +0.8%), and utilities (+4,900; +3.1%). Conversely, employment fell in public administration (-32,000; -2.5%), accommodation and food services (-16,000; -1.4%), transportation and warehousing (-16,000; -1.4%), and business, building and other support services (-15,000; -2.1%).

Among core-aged women (25 to 54 years old), employment increased by 42,000 (+0.6%), while among core-aged men, employment fell by 31,000 (-0.4%). The employment rate among core-aged women rose to 80.1%, while the rate among core-aged men fell to 86.0%, the lowest since August 2018 (excluding 2020 and 2021, during the COVID-19 pandemic).

The unemployment rate among returning students aged 15 to 24 was 20.1% in May, an increase of 3.2 percentage points from May 2024. This rate was comparable to the rates observed in May 2009 and May 1999 (excluding the pandemic years of 2020 and 2021). Among employed returning students, most worked in retail trade (28.8%), accommodation and food services (20.5%), and information, culture and recreation (13.1%).

Employment increased in British Columbia (+13,000; +0.4%), Nova Scotia (+11,000; +2.1%), and New Brunswick (+7,600; +1.9%), while it declined in Quebec (-17,000; -0.4%), Manitoba (-5,800; -0.8%), and Prince Edward Island (-2,700; -2.9%). The unemployment rate in British Columbia was little changed at 6.4%, while in Quebec it remained at 5.8%.

The average duration of unemployment has been rising, with unemployed people spending an average of 21.8 weeks searching for work in May, up from 18.4 weeks in May 2024. Furthermore, nearly half (46.5%) of people unemployed in May 2025 had not worked in the previous 12 months or had never worked, up from 40.7% in May 2024.

References:
[1] https://www150.statcan.gc.ca/n1/daily-quotidien/250606/dq250606a-eng.htm