Canada Witnesses Strong Job Growth in June Adds 83,000 New Jobs

Canada Sees Strong Employment Growth with 83,000 New Jobs in June 2025

Lakshmi

Updated On Jul 15, 2025

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Canada Sees Strong Employment Growth with 83,000 New Jobs in June 2025

On July 11, 2025, Statistics Canada released the Labour Force Survey for June 2025, presenting a dynamic snapshot of the Canadian labour market. With a remarkable increase of 83,000 jobs in June and a declining unemployment rate to 6.9% coupled with steady wage growth, the data reflects a resilient economy regaining its footing.

Employment Growth Signals Economic Strength

June marked a milestone for Canada's job market, registering the first major employment surge since January, with a 0.4% monthly increase.

The rise was largely fuelled by part-time work, which saw a dramatic spike of 70,000 jobs (+1.8%).
The overall employment rate ticked up to 60.9%, recovering from an earlier decline.
Both the private sector (+ 47,000 jobs) and public sector (+23,000 jobs) showed robust hiring activity.
However, self-employment levels remain unchanged, suggesting that traditional employment is currently leading the recovery

Declining Unemployment Indicating Labour Market Positivity

The unemployment rate dropped to 6.9%, the first decline witnessed since January, reversing a three-month rise that had peaked at 7%
While fewer Canadians were job hunting, long-term unemployment increased, with 21.8% of job seekers unemployed for over 27 weeks, up from 17.7% last year.
Playoff rates, meanwhile, held firm at 0.5% echoing pre-pandemic norms

Core Aged Workers Were The Major Drivers of Job Gains

The bulk of employment gains came from the core working age population, that is, 25 to 54 years

Core aged men saw a strong rebound, adding 62,000 jobs (+0.8%), with their employment rate climbing to 86.6%
Core aged women continued their upward trend, gaining 29,000 jobs (+0.4%), boosting their employment rate to 80.3%.
Conversely, youth aged between 15 to 24 years and older workers aged 55 years and above experienced little to no change in employment levels, highlighting a generational divide in the recovery.

Industry Highlights, Retail and Healthcare Take the Lead

Retail trade was a key driver contributing 38,000 new jobs (+1.7%), part of an overall gain of 34,000 in wholesale and retail trade.
Healthcare and social assistance added 17,000 jobs (+0.6%) bouncing back after a long pause
Agriculture, however, lost 6,000 jobs (-2.6%) signaling challenges in rural employment

Provincial Job Trends in Canada in June 2025

Alberta led in job creations with 30,000 new positions (+1.2%), reducing its unemployment rate to 6.8%.
Quebec added 23,000 jobs mainly in retail, although its unemployment rate rose to 6.3% due to a growing labour force.
Ontario regains 21,000 jobs, but issues remain in regions like Windsor, where auto trade disruptions push the local unemployment rate to 11.2%.
Manitoba added 8,500 jobs, lowering its unemployment rate to 5.5%
Meanwhile, Newfoundland and Labrador and Nova Scotia saw modest job losses, though their unemployment rates remained unchanged

Wage Grown Further Strengthens Workers Power

Canadian workers experienced a 3.2% year over year rise in average hourly wages, now at CAD 36.01 per hour, following a 3.4% jump in May. This boost enhances purchasing power and reflects the employer's efforts to attract skilled talent. Additionally, total hours worked increased by 0.5% in June and 1.6% year over year, signalling rising business activity in the country.

Youth Continue to Face Job Market Hurdles

Despite the strong overall data, youth unemployment remains high:

Youth aged between 15 to 24 years witnessed a 14.2% unemployment rate
Returning students witnessed a 17.4% unemployment rate, which is the highest since 2009.
While teenagers aged between 15 to 16 years witnessed an unemployment rate at a staggering 27.8%.

These figures further highlight the tough job landscape for younger Canadians, especially during the summer.

Long-term Unemployment in Canada Still a Worry?

The total number of unemployed Canadians rose to 1.6 million, up by 128,000 year over year. Long-term unemployment increased to 21.8% suggesting persistent difficulties in certain groups, re-entering the workforce, possibly due to the regional or skill-related mismatches.

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