Canada adds 88,000 jobs in May, unemployment drops to 6.6%

Canada's unemployment rate fell to 6.6 percent in May as the economy added a surprising 88,000 jobs, according to data released Friday by Statistics Canada. The gain, which far exceeded economists' expectations of 10,000 new positions, partially offset significant job losses recorded earlier in the year.

The national unemployment rate dropped from 6.9 percent in April. The job growth in May was the first significant increase since November 2025, following a net loss of 112,000 jobs in the first four months of the year.

Employment gains were widespread and concentrated in full-time work. The construction sector led with an increase of 27,000 jobs, followed by the information, culture and recreation sector, and the transportation and warehousing industry. The manufacturing sector also posted gains. Conversely, the wholesale and retail trade sector lost 35,000 positions.

Young workers aged 15 to 24 saw a notable improvement, adding 99,000 full-time jobs. The youth unemployment rate fell for the first time since January to 13.4 percent, though it remains above pre-pandemic averages. Average hourly wage growth slowed to three percent in May, down from 4.5 percent in April.