The Canadian economy lost 1,400 jobs in June, causing the unemployment rate to climb to its highest level in more than two years, according to Statistics Canada’s latest report.
The unemployment rate rose to 6.4 percent in June, up from 6.2 percent in May, marking the highest reading since January 2022, when it stood at 6.5 percent. This increase comes as the size of the labor force grew, continuing a trend observed since April 2023, with the unemployment rate rising by 1.3 percentage points over that period.
Statistics Canada also highlighted a rise in long-term unemployment, with 17.6 percent of those unemployed in June having been jobless for 27 weeks or more, up four percentage points from a year earlier.
The overall job loss in June included a reduction of 3,400 full-time positions, partially offset by a gain of 1,900 part-time jobs. Sector-wise, employment in transportation and warehousing fell by 11,700 jobs, and public administration saw a decline of 8,800 positions. On the positive side, the accommodation and food services sector added 17,200 jobs, and employment in agriculture grew by 12,300.
This jobs report is a crucial data point ahead of the Bank of Canada’s next interest rate decision on July 24. The central bank recently cut its key interest rate to 4.75 percent, the first reduction since the early days of the pandemic.
Unemployment Rates by Province for June:
- Newfoundland and Labrador: 9.2% (previously 9.9%)
- Prince Edward Island: 8.0% (previously 7.1%)
- Nova Scotia: 6.6% (previously 6.4%)
- New Brunswick: 7.7% (previously 7.5%)
- Quebec: 5.7% (previously 5.1%)
- Ontario: 7.0% (previously 6.7%)
- Manitoba: 5.1% (previously 4.9%)
- Saskatchewan: 5.5% (previously 5.6%)
- Alberta: 7.1% (previously 7.2%)
- British Columbia: 5.2% (previously 5.6%)