Canada’s labour market posted a stronger-than-expected rebound in May, adding 88,000 jobs as the unemployment rate fell to 6.6 per cent, according to Statistics Canada.
The gain marked the first major increase in employment since November 2025 and came after the economy lost 112,000 net jobs over the first four months of the year.
Economists surveyed by Reuters had expected the unemployment rate to remain at 6.9 per cent, with only 10,000 new jobs added.
The May gains were driven entirely by full-time employment, which rose by 154,000 positions, while part-time work fell by 66,200.
Construction led the increase with 26,800 new jobs, followed by information, culture and recreation, transportation and warehousing, and accommodation and food services.
However, wholesale and retail trade saw a decline of 35,000 jobs.
Youth unemployment also eased to 13.4 per cent, down from 14.3 per cent in April, with gains also concentrated in full-time positions.
Average hourly wages for permanent employees rose 3.2 per cent in May, slowing sharply from 4.8 per cent in April.
