Canada Adds 18,200 Jobs in June as Unemployment Drops

The Canadian economy added 18,200 jobs in June, surpassing economist expectations of 10,000 and lowering the national unemployment rate to 6.5 per cent from 6.6 per cent in May. Statistics Canada reports that growth was driven primarily by the private sector and part-time roles, with a significant surge in the youth labor market. Workers aged 15 to 24 added 33,000 positions, particularly in retail, wholesale, and hospitality sectors, a trend some economists attribute to the FIFA World Cup.

However, the data reveals deep sectoral divides. The manufacturing sector shed 17,000 positions in June and remains down 61,000 since January 2025, a decline attributed to the impact of U.S. tariffs. Public sector employment also declined by 31,000. Despite the monthly gain, year-to-date job creation remains negative by 6,000 positions, and average hourly wages rose 3.3 per cent annually to $37.20.

Financial markets reacted with a three-week high for the Canadian dollar and mixed stock openings. Economists suggest these moderate figures are unlikely to alter the trajectory of the Bank of Canada, which is expected to maintain its overnight interest rate at 2.25 per cent during its July 15 announcement. While some analysts view the economy as more resilient than anticipated, others warn that the results represent a pass rather than a show of strength, noting that the labor market remains weak with unemployment higher than normal.