Canada’s Unemployment Drops to 6.9%, Adds 83,000 New Jobs
n July 11, 2025, Statistics Canada released its highly anticipated Labour Force Survey for June 2025, unveiling a vibrant picture of the Canadian job market.
With employment soaring by 83,000 jobs, a declining unemployment rate, and notable wage growth, the data signals a pivotal moment for Canada’s economic recovery.
This comprehensive analysis dives into the key highlights, regional trends, industry shifts, and demographic insights.
Table of Contents
Employment Boom: A Game-Changer for Canada’s Economy
Unemployment Rate Dips: A Sign of Stability
Core-Aged Workers Fuel the Surge
Industry Spotlight: Retail and Healthcare Lead the Way
Regional Powerhouses: Alberta, Quebec, Ontario, and Manitoba Shine
Wage Growth: A Bright Spot for Workers
Youth and Returning Students Face Challenges
Long-Term Unemployment: A Growing Concern
Sectoral and Demographic Insights
Why This Matters Now
Employment Boom: A Game-Changer for Canada’s Economy
Canada’s Unemployment Drops to 6.9%, Adds 83,000 New Jobs
June 2025 marked a turning point for Canada’s labor market, with employment rising by an impressive 83,000 jobs, a 0.4% increase from the previous month.
This surge, the first significant gain since January, was driven primarily by part-time work, which skyrocketed by 70,000 positions (+1.8%).
The employment rate—the proportion of people aged 15 and older who are employed—edged up by 0.1 percentage points to 60.9%, reversing a cumulative decline of 0.3 points in March and April.
This employment boom reflects a resilient economy adapting to evolving workforce demands.
The private sector added 47,000 jobs (+0.3%), while the public sector contributed 23,000 positions (+0.5%).
Self-employment, however, remained stable, indicating that traditional employment sectors are leading the charge.
Unemployment Rate Dips: A Sign of Stability
The unemployment rate fell to 6.9% in June, down 0.1 percentage points from May and marking the first decline since January.
This drop follows a three-month upward trend that saw the rate peak at 7.0%—the highest since September 2016, excluding the COVID-19 pandemic years.
The decline signals growing confidence in the job market, with fewer Canadians actively seeking work.
Despite the overall improvement, long-term unemployment remains a concern.
In June, 21.8% of unemployed individuals had been jobless for 27 weeks or more, up from 17.7% a year earlier.
However, layoff rates held steady at 0.5%, comparable to pre-pandemic levels, suggesting that job losses are not driving the unemployment figures.
Core-Aged Workers Fuel the Surge
The employment gains were concentrated among core-aged workers (25 to 54 years old), with men and women both posting significant increases.
Core-aged men added 62,000 jobs (+0.8%), rebounding from a 31,000-job decline in May.
Their employment rate rose 0.6 percentage points to an impressive 86.6%.
Core-aged women, building on May’s momentum, gained 29,000 jobs (+0.4%), pushing their employment rate up 0.2 points to 80.3%.
These gains highlight the strength of Canada’s prime working-age population, which continues to drive economic productivity.
However, youth (15 to 24 years) and older workers (55 and older) saw little change in employment, underscoring a generational divide in the labor market’s recovery.
Industry Spotlight: Retail and Healthcare Lead the Way
Canadas Unemployment Drops to 6.9%, Adds 83,000 New Jobs
The June employment surge was fueled by standout performances in key industries. Wholesale and retail trade led with a 34,000-job increase (+1.1%), primarily in retail trade (+38,000; +1.7%).
This sector has shown remarkable resilience, with a year-over-year gain of 84,000 jobs (+2.9%), reflecting strong consumer demand and evolving retail trends.
Health care and social assistance also shone, adding 17,000 jobs (+0.6%)—the first notable increase since December 2024.
Year-over-year, the sector grew by 78,000 jobs (+2.8%), driven by Canada’s aging population and increasing demand for healthcare services.
Agriculture, however, faced a setback, shedding 6,000 jobs (-2.6%), though its year-over-year employment remained stable.
Regional Powerhouses: Alberta, Quebec, Ontario, and Manitoba Shine
The employment gains were not evenly distributed across Canada, with certain provinces emerging as economic powerhouses.
Alberta led the pack, adding 30,000 jobs (+1.2%), primarily in full-time positions.
The province’s unemployment rate fell 0.6 points to 6.8%, signaling robust economic momentum.
This growth follows a strong performance in April, positioning Alberta as a leader in Canada’s recovery.
Quebec added 23,000 jobs (+0.5%), with wholesale and retail trade driving the majority of the gains (+14,000; +2.1%).
However, the province’s unemployment rate rose to 6.3% (+0.5 points) due to an increase in job seekers, highlighting a complex labor market dynamic.
Ontario, Canada’s economic heartland, saw employment rise by 21,000 (+0.3%), recovering from a 62,000-job decline in March and April.
The unemployment rate held steady at 7.8%, but challenges persisted in the Windsor census metropolitan area, where trade disruptions in automotive manufacturing pushed the unemployment rate to 11.2%—the highest among CMAs.
Manitoba also posted strong gains, adding 8,500 jobs (+1.2%), with its unemployment rate dropping 0.4 points to 5.5%. Conversely, Newfoundland and Labrador (-3,500; -1.4%) and Nova Scotia (-3,400; -0.6%) saw employment declines, though their unemployment rates remained stable at 9.9% and 6.7%, respectively.
Wage Growth: A Bright Spot for Workers
Canadian workers received a significant boost in June, with average hourly wages rising 3.2% year-over-year (+$1.10 to $36.01).
This follows a 3.4% increase in May, indicating sustained wage growth that outpaces inflation.
The rise in wages reflects employers’ efforts to attract and retain talent in a competitive labor market, providing workers with greater purchasing power and financial stability.
Total hours worked also increased by 0.5% in June, with a year-over-year gain of 1.6%.
This uptick suggests that businesses are ramping up operations to meet growing demand, further fueling economic growth.
Youth and Returning Students Face Challenges
Canadas Unemployment Drops to 6.9%, Adds 83,000 New Jobs
While the overall labor market showed strength, youth and returning students faced persistent challenges.
The unemployment rate for youth aged 15 to 24 held steady at 14.2% in June but was up 0.7 percentage points from June 2024.
This rate remains significantly higher than the pre-pandemic average of 10.8% (2017–2019), reflecting a tough job market for younger workers.
Returning students aged 15 to 24 faced even steeper hurdles, with an unemployment rate of 17.4% in June—up from 15.8% a year earlier and the highest for the month since 2009 (excluding the pandemic period).
Teenagers (15 to 16 years) saw their unemployment rate climb to 27.8% (+3.3 points), while those aged 17 to 19 and 20 to 24 also faced increases of 1.8 and 1.2 points, respectively.
These figures highlight the difficulties young Canadians face in securing summer employment, a critical stepping stone to financial independence and career development.
Long-Term Unemployment: A Growing Concern
While the overall unemployment rate declined, long-term unemployment remains a pressing issue.
The number of unemployed individuals rose by 128,000 (+9.0%) year-over-year, reaching 1.6 million in June.
The proportion of those jobless for 27 weeks or more increased to 21.8%, up from 17.7% in June 2024.
This trend suggests that while new jobs are being created, some Canadians are struggling to re-enter the workforce, potentially due to skill mismatches or regional economic disparities.
Sectoral and Demographic Insights
The June data reveals nuanced trends across demographics and industries.
Core-aged women saw their unemployment rate drop to 5.4% (-0.3 points), while core-aged men’s rate held steady at 6.1%.
Older workers (55 and older) maintained an unemployment rate of 5.4%, with a slight year-over-year increase (+0.3 points).
Industries such as wholesale and retail trade and health care and social assistance are proving to be economic engines, while agriculture’s decline underscores the challenges faced by rural economies.
The stability in self-employment suggests that entrepreneurial activity has yet to rebound significantly, possibly due to economic uncertainties or shifting workforce preferences.
Why This Matters Now
Canada’s labor market surge in June 2025 is more than just numbers—it’s a story of resilience, opportunity, and transformation.
As the nation navigates global economic uncertainties, these gains highlight the strength of its workforce and the potential for sustained growth.
Whether you’re a job seeker, employer, or policymaker, this report offers critical insights into the trends shaping Canada’s future.
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