Canada’s Unemployment Rate Rose To 6.4% In June

Canada’s unemployment rate rose to 6.4% in June, an increase of 0.2 percentage points from the 6.2% rate that was recorded in May of this year.

June’s increase in the unemployment rate continues a trend that has been ongoing for more than a year.

Statistics Canada, which releases the Labour Force Survey, said that the unemployment rate across the country has risen 1.30% since April 2023, reflecting a slowing economy.

In June, employment declined among young men aged 15 to 24 (down 13,000 positions) while it increased for women aged 25 to 54 (up 19,000).

Across the economy, employment declined in transportation and warehousing (down 12,000 positions) and public administration (down 8,800).

Those job losses were partially offset by employment growth in the accommodation and food services sector (up 17,000) and agriculture (up 12,000).

Among the provinces, employment declined in Quebec (down 18,000 jobs) while it increased in New Brunswick (up 3,000) and in Newfoundland and Labrador (up 2,600).

Total hours worked in Canada fell 0.4% in June and average hourly wages gained 5.4% on a year-over-year basis.

Economists have said that the rise in unemployment reflects a slowing economy in Canada as interest rates remain elevated.

The Bank of Canada lowered interest rates by 25-basis points in June of this year and is widely expected to cut rates further at its policy meeting in September.

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