The number of Canadians receiving unemployment benefits surged 12.8% in June compared to the same month last year, signaling growing job market stress as the country grapples with trade tensions and tariff pressures, Statistics Canada reported Thursday.
About 541,000 Canadians received regular Employment Insurance benefits in June, an increase of 18,000 from May and 62,000 more than in June 2024. The steady climb represents the fifth consecutive monthly increase in certain sectors.
Quebec and Ontario bore the brunt of the increases, accounting for 84.3% of new benefit recipients nationwide. Quebec saw a 6.1% monthly spike with 7,300 additional claimants, while Ontario recorded a 4.5% increase with 7,900 new recipients.
The surge coincides with mounting economic pressures from US President Donald Trump’s tariff policies and escalating trade disputes with China. Many Canadian businesses are absorbing higher costs rather than cutting jobs immediately, but small business surveys suggest closures may be imminent without relief.
Workers in sales and service occupations filed the most new claims, with 4,800 additional recipients in June alone — marking the fifth consecutive monthly increase for this sector. Manufacturing and utilities workers followed closely, with 4,300 new claimants, mostly in Ontario.
The data suggests unemployment challenges extend beyond temporary layoffs. Over the first half of 2025, benefit recipients climbed by 54,000 people, an 11% increase that reflects sustained labor market weakness.
Read: Canada Loses 41,000 Jobs In July While Unemployment Rate Remains At 6.9%
Core-aged men and women over 55 saw the sharpest increases, with older women experiencing a 21.7% jump in benefit claims compared to last June. The demographic pattern suggests both cyclical job losses and longer-term structural changes in the economy.
Canada’s unemployment rate held at 6.9% in July, but 41,000 jobs disappeared from the labor force that month, according to separate government data. The combination of job losses and rising benefit claims points to growing economic headwinds as the country navigates an increasingly complex global trade environment.
The government has not announced additional support measures, though temporary Employment Insurance enhancements remain available for regions experiencing major economic disruptions.
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