Canada’s labor market unexpectedly shed jobs in June, with the unemployment rate climbing to 6.4%, signaling potential economic headwinds for the country.
Statistics Canada reported on Friday that the economy lost 1,400 jobs last month, a marginal decline but a stark contrast to the modest gains economists had anticipated, with forecasts calling for gains of 25,000 jobs and unemployment rate of 6.3%. The unemployment rate rose by 0.2 percentage points, continuing an upward trend that has seen it increase by 1.3 percentage points since April 2023.
The job losses were concentrated among young men aged 15 to 24, who saw employment fall by 13,000 or 0.9%. Core-aged women (25 to 54) experienced a slight increase in employment, adding 19,000 jobs or 0.3%.
READ: Job Vacancies Continue to Tumble, Canada Now Has 2.3 Unemployed Persons for Every Job Vacancy
Sectoral shifts were evident, with declines in transportation and warehousing (-12,000) and public administration (-8,800), while accommodation and food services (+17,000) and agriculture (+12,000) saw gains. Regionally, Quebec experienced the most significant job losses (-18,000), while New Brunswick and Newfoundland and Labrador posted modest gains.
Despite the overall job losses, average hourly wages increased by 5.4% year-over-year, slightly outpacing the 5.1% growth observed in May.
Information for this story was found via Statistics Canada, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
