Canadian Employment Increases but So Does Unemployment in June

Statistics Canada (StatCan) reported on Friday (7-7-23) that employment in Canada in June increased by 60,000, or 0.3%, following little change in May. The increase was the largest since January. Employment growth had moderated from February to May, averaging 20,000 per month, following strong employment growth from October 2022 to January 2023, when it averaged 79,000 per month.

In June, employment increased in the wholesale and retail trades, up 33,000, or 1.1%; health care and social assistance, up 21,000, or 0.8%; manufacturing, up 27,000, or 1.5%; and transportation and warehousing, up 10,000, or 1.0%. Offsetting those gains were losses in the construction sector, down 14,000, or 0.8%, and educational services, down 14,000, or 0.9%.

The unemployment rate increased 0.2% in June to 5.4%, following a similar increase of 0.2% in May. The increase brought the rate to its highest level since February 2022 when it was 5.4%. There were 1.1. million Canadians unemployed in June—an increase of 54,000, or 4.9%.

StatCan notes that despite the consecutive monthly increases in May and June, the unemployment rate in Canada remains below its pre-COVID-19 average of 5.7% recorded in the 12 months prior to February 2020.