Canadian Employment Increases, While Unemployment Sets New Record Low in May 2022

Statistics Canada (StatsCan) reported today (6-10-22) that employment rose by 40,000 (+0.2%) in May, after pausing in April. Since May 2021, when the labor market was impacted by the third wave of the COVID-19 pandemic, total employment has increased by 1.1 million (+5.7%). And as of May 2022, employment was 497,000 (+2.6%) above its pre-COVID February 2020 level.

The unemployment rate edged down -0.1 percentage points to 5.1% in May, marking three consecutive months in which this key labor market indicator has reached a new record low. However, there were 208,000 people who have been searching for work or on temporary lay-off for 27 weeks or more in May, little changed for the third consecutive month. While many leading labor market indicators have recovered to pre-pandemic levels, long-term unemployment has remained elevated and accounted for 19.7% of all unemployment in May, up from 15.6% in February 2020.