Canada’s unemployment rate dropped to 6.6 percent in May on an unexpected spike in hirings across multiple sectors, partially offsetting job losses earlier in the year, government data showed Friday.
The G7 economy gained 88,000 jobs in May, Statistics Canada reported — far exceeding analyst expectations of an increase of 10,000.
That jump mainly came in the construction, information, transportation and food services industries, the agency said.
In April, Canada’s unemployment rate stood at 6.9 percent, after job losses in early 2026 that were the highest since the Covid-19 pandemic, amid trade tensions with the United States and an uncertain global outlook.
Despite the employment rebound, experts remain wary, especially after Canada entered into a technical recession on May 29, following two consecutive quarters of GDP contraction.
“We continue to see downside risks for the Canadian economy both from fundamental weakness and trade negotiations” with the United States, said Desjardins economist Royce Mendes.
In the coming months, Canada must renegotiate its free trade agreement with the United States and Mexico — all while US President Donald Trump repeatedly puts the deal in question.
Trump has threatened to slap Ottawa with new tariffs, putting the job market on edge, with an added layer of economic stress caused by the conflict in the Middle East.
“Given the volatility, it’s difficult to have much confidence in the signaling power of today’s reading,” Mendes said.
unemployment rate dropped to 6.6 percent in May on an unexpected spike in hirings across multiple sectors, partially offsetting job losses earlier in the year, government data showed Friday.
The G7 economy gained 88,000 jobs in May, Statistics Canada reported — far exceeding analyst expectations of an increase of 10,000.
That jump mainly came in the construction, information, transportation and food services industries, the agency said.
In April, Canada’s unemployment rate stood at 6.9 percent, after job losses in early 2026 that were the highest since the Covid-19 pandemic, amid trade tensions with the United States and an uncertain global outlook.
Despite the employment rebound, experts remain wary, especially after Canada entered into a technical recession on May 29, following two consecutive quarters of GDP contraction.
“We continue to see downside risks for the Canadian economy both from fundamental weakness and trade negotiations” with the United States, said Desjardins economist Royce Mendes.
In the coming months, Canada must renegotiate its free trade agreement with the United States and Mexico — all while US President Donald Trump repeatedly puts the deal in question.
Trump has threatened to slap Ottawa with new tariffs, putting the job market on edge, with an added layer of economic stress caused by the conflict in the Middle East.
“Given the volatility, it’s difficult to have much confidence in the signaling power of today’s reading,” Mendes said.
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