Canada's labour market was hit once again in May as the unemployment rate climbed to 7%, its highest since 2016, excluding pandemic years, as per a Statistics Canada report. It's the third consecutive month of increasing unemployment and shows that 1.6 million Canadians were jobless in May, rising 13.8% from a year ago, as per the report.
Statistics Canada mentioned, "Overall, there has been virtually no employment growth since January, following strong gains from October 2024 to January 2025."
While the report also found that employment increased in wholesale and retail trade by 1.5%, per Statistics Canada. Information, culture and recreation rose by 2.3%, finance, insurance, real estate, rental and leasing by 0.8% and utilities by 3.1%, as per Statistics Canada.
How many people are unemployed now?
1.6 million Canadians were unemployed in May, according to Statistics Canada.
Who’s being affected the most?
Core-aged men (25 to 54) lost 31,000 jobs in May, while long-term unemployment is also increasing.
Canada's Employment Stalls Again
The economy added just 8,800 more jobs in May, and the employment rate held steady at 60.8%, as per Statistics Canada.Statistics Canada mentioned, "Overall, there has been virtually no employment growth since January, following strong gains from October 2024 to January 2025."
Fewer Job Seekers Finding Work
As per the report, only 22.6% of the unemployed people in April got employed in May, while it was 24% a year ago. Statistics Canada said, "This indicates that people are facing greater difficulties finding work in the current labour market." The report also revealed that almost half, 46.5%, of people unemployed in May had been jobless since last year or had never worked. This has increased from 40.7% in May 2024, as per the report.Core-Aged Women Gain, Men Lose Jobs
The data also showed that employment among women of the age group of 25 years to 54 years increased by 42,000, but among the men of the same age group, it dropped by 31,000, reported Statistics Canada. Employment was little changed for youth and people aged 55 years and older.Mixed Results by Industry
Statistics Canada pointed out that employment dropped in public administration by 2.5% and accommodation and food services by 1.4%. Transportation and warehousing fell by 1.4% and business, building and other support services by 2.1%, as per Statistics Canada.While the report also found that employment increased in wholesale and retail trade by 1.5%, per Statistics Canada. Information, culture and recreation rose by 2.3%, finance, insurance, real estate, rental and leasing by 0.8% and utilities by 3.1%, as per Statistics Canada.
FAQs
How many people are unemployed now?1.6 million Canadians were unemployed in May, according to Statistics Canada.
Who’s being affected the most?
Core-aged men (25 to 54) lost 31,000 jobs in May, while long-term unemployment is also increasing.
