6 June: Employment was little changed in May (+8,800; +0.0%) and the employment rate held steady at 60.8%. The unemployment rate rose 0.1 percentage points to 7.0%.
In May, employment among core-aged (25 to 54 years old) women increased by 42,000 (+0.6%), while among core-aged men it fell by 31,000 (-0.4%). Employment was little changed for youth and people aged 55 years and older.
In May, employment grew in wholesale and retail trade (+43,000; +1.5%), information, culture and recreation (+19,000; +2.3%), finance, insurance, real estate, rental and leasing (+12,000; +0.8%) and utilities (+4,900; +3.1%). Employment fell in public administration (-32,000; -2.5%), accommodation and food services (-16,000; -1.4%), transportation and warehousing (-16,000; -1.4%) and business, building and other support services (-15,000; -2.1%).
Employment increased in British Columbia (+13,000; +0.4%), Nova Scotia (+11,000; +2.1%), and New Brunswick (+7,600; +1.9%), while it declined in Quebec (-17,000; -0.4%), Manitoba (-5,800; -0.8%), and Prince Edward Island (-2,700; -2.9%). There was little change in the other provinces in May.
Total hours worked were unchanged in May but were up 0.9% compared with 12 months earlier.
Average hourly wages among employees increased 3.4% (+$1.20 to $36.14) on a year-over-year basis in May, the same growth rate as in April (not seasonally adjusted).
Employment holds steady in May
Employment held steady for a second consecutive month in May (+8,800; +0.0%). Growth in full-time employment (+58,000; +0.3%) was offset by a decline in part-time work (-49,000; -1.3%). Overall, there has been virtually no employment growth since January, following strong gains from October 2024 to January 2025 (+211,000; +1.0%).
The employment rate—the proportion of the population aged 15 and older who are employed—was unchanged at 60.8% in May, matching a recent low observed in October 2024. The employment rate had previously fallen for two consecutive months in March (-0.2 percentage points) and April 2025 (-0.1 percentage points).
Chart 1
Employment rate holds steady in May
The number of employees in the private sector rose by 61,000 (+0.4%) in May, the first increase since January. Public sector employment fell by 21,000 (-0.5%) in the month, following an increase in April that was attributable in part to the hiring of temporary workers for the federal election. Self-employment also fell (-30,000; -1.1%) in May, the first significant decrease since May 2023.
Employment rate up for core-aged women, while it falls for core-aged men to lowest rate since 2018
Among core-aged women (25 to 54 years old), employment rose by 42,000 (+0.6%) in May, and the employment rate rose 0.5 percentage points to 80.1%. The increase in the month partially offset a strong employment decline recorded in the previous month (-60,000; -0.9%), which had driven the employment rate down 0.9 percentage points.
Among core-aged men, employment fell by 31,000 (-0.4%) in May. This followed an increase of 24,000 (+0.3%) in April. The employment rate among core-aged men fell 0.5 percentage points to 86.0% in May, the lowest rate since August 2018 (excluding 2020 and 2021, during the COVID-19 pandemic).
Employment was little changed for a fourth consecutive month among youth aged 15 to 24 in May. The youth employment rate was 54.1% in May, unchanged in the month but down 1.1 percentage points on a year-over-year basis.
For people aged 55 years and older, employment was little changed, both in the month and on a year-over-year basis.
Infographic 1
Employment rate by age group, May 2025
Unemployment rate rises to 7.0%, the highest since 2016
The unemployment rate increased 0.1 percentage points to 7.0% in May, the highest rate since September 2016 (excluding 2020 and 2021, during the pandemic). The uptick in May was the third consecutive monthly increase; since February, the unemployment rate has risen by a combined total of 0.4 percentage points.
There were 1.6 million unemployed people in May, an increase of 13.8% (+191,000) from 12 months earlier. A smaller share of people who were unemployed in April transitioned into employment in May (22.6%), compared with one year earlier (24.0%) and compared with the pre-pandemic average for the same months in 2017, 2018 and 2019 (31.5%) (not seasonally adjusted). This indicates that people are facing greater difficulties finding work in the current labour market.
The average duration of unemployment has also been rising; unemployed people had spent an average of 21.8 weeks searching for work in May, up from 18.4 weeks in May 2024. Furthermore, nearly half (46.5%) of people unemployed in May 2025 had not worked in the previous 12 months or had never worked, up from 40.7% in May 2024 (not seasonally adjusted).
The layoff rate—representing the proportion of people who were employed in April but had become unemployed in May as a result of a layoff—was 0.6%, unchanged from May 2024 (not seasonally adjusted).
Chart 2
Unemployment rate rises to 7.0% in May
In May, the unemployment rate increased 0.4 percentage points among core-aged men to reach 6.2%. There was little change in the unemployment rate of core-aged women (5.7%), youth (14.2%), or people aged 55 years and older (5.3%).
Infographic 2
Unemployment rate by age group, May 2025
Youth face difficult start to summer job market
May marks the beginning of another summer student job season—an important source of income and work experience for many youth. From May to August, the Labour Force Survey collects labour market information about students who attended school full time in March and who intend to return to school full time in the fall. The month of May provides the first indicator of the summer job market, especially for older youth, as high-school students are still attending classes.
In May, the unemployment rate among returning students aged 15 to 24 was 20.1%, an increase of 3.2 percentage points from May 2024 (not seasonally adjusted). The unemployment rate for this group has trended up each May from the record low of 11.4% in May 2022, which was observed during a tight labour market.
The unemployment rate for returning students aged 15 to 24 in May 2025 was comparable to the rates last observed in May 2009 (20.0%) and May 1999 (20.1%) (excluding the pandemic years of 2020 and 2021).
Chart 3
Unemployment rate for returning students aged 15 to 24, month of May, 1977 to 2025
For young men, the unemployment rate among returning students was 22.1% (+4.1 percentage points year-over-year) in May 2025. For young women, it was 18.4% (+2.3 percentage points year over year).
Chart 4
Upward trend in unemployment rate of returning students among both men and women
Among employed returning students in May, most worked in retail trade (28.8%), accommodation and food services (20.5%), and information, culture and recreation (13.1%). On a year-over-year basis, employment among returning students in accommodation and food services fell by 22.1% (-66,000), while their employment in the other two industries was little changed.
Across all industries, the most common occupations for returning students in May were retail salespersons; food counter attendants, kitchen helpers and related support occupations; cashiers; as well as program leaders and instructors in recreation, sport and fitness.
Among youth aged 15 to 24 who were not returning students, the unemployment rate was 12.2%, compared with 11.6% 12 months earlier.
Employment up in wholesale and retail trade, while declines in public administration offset temporary hiring in the previous month
Employment rose in wholesale and retail trade (+43,000; +1.5%) in May, driven by gains in wholesale trade. The increase partially offsets monthly declines in March and April 2025 which totalled 55,000 (-1.8%).
In May, employment also increased in information, culture and recreation (+19,000; +2.3%) and finance, insurance, real estate, rental and leasing (+12,000; +0.8%). Employment has trended up in finance, insurance, real estate, rental and leasing since October 2024, with a net increase of 79,000 (+5.6%) over the period.
Meanwhile, employment fell in public administration (-32,000; -2.5%), offsetting the increase in April that was related to temporary hiring for the federal election. Prior to these offsetting changes, there had been little change in public administration employment since July 2024.
Chart 5
Employment change by industry, May 2025
Employment also declined in May in transportation and warehousing (-16,000; -1.4%); accommodation and food services (-16,000; -1.4%) and business, building and other support services (-15,000; -2.1%).
Employment increases in British Columbia, down in Quebec
Employment in British Columbia rose by 13,000 (+0.4%) in May, following little change over the previous three months. The unemployment rate in the province was little changed at 6.4%. In Victoria, the unemployment rate (3.7%) was the lowest among Canada’s 20 largest census metropolitan areas (CMAs) in May (three-month moving averages). The unemployment rate in Vancouver (6.4%) was similar to the provincial average.
Employment also increased in Nova Scotia (+11,000; +2.1%) and New Brunswick (+7,600; +1.9%) in May, and the unemployment rate fell in both provinces (down 0.7 percentage points to 6.5% in Nova Scotia and down 0.6 percentage points to 6.3% in New Brunswick).
Employment decreased in Quebec (-17,000; -0.4%) in May, offsetting a similar-sized increase in April. Prior to April, employment in Quebec had held steady for four consecutive months. The unemployment rate in Quebec was little changed at 5.8% in May.
Employment in Ontario was virtually unchanged in May, following declines totalling 62,000 (-0.8%) over the previous two months. The unemployment rate in Ontario stood at 7.9% in May, little changed from April.
Regions of Southern Ontario have faced an uncertain economic climate brought on by the threat or imposition of tariffs on motor vehicle and parts exports. The highest unemployment rates across Canada’s 20 largest CMAs in May were in Windsor (10.8%), Oshawa (9.1%) and Toronto (8.8%) (three-month moving averages). The unemployment rate has increased sharply since January in both Windsor (+1.7 percentage points) and Oshawa (+0.9 percentage points).
Map 1
Unemployment rate by province and territory, May 2025
Infographic 3
Unemployment rate rises in most of the large census metropolitan areas
In the spotlight: Employment rate holds steady for core-aged First Nations people living off reserve
June is National Indigenous History Month in Canada, a time to recognize the rich history, heritage, resilience and diversity of First Nations, Inuit and Métis.
In May 2025, the employment rate for First Nations people aged 25 to 54 living off reserve was 68.2%, little changed from one year earlier (three-month moving averages; not seasonally adjusted). The employment rate among this age group was lower for First Nations women (64.0%) compared with men (72.8%).
Among core-aged Métis, the employment rate in May 2025 (81.1%) was up 3.2 percentage points on a year-over-year basis. In Nunavut, the employment rate of core-aged Inuit (55.8%) was little changed from a year earlier.
The employment rates for Indigenous youth were significantly lower than for their core-aged counterparts, consistent with the pattern observed for the non-Indigenous population. In May, the employment rate among First Nations youth (aged 15 to 24) living off reserve (46.1%) and Métis youth (53.5%) were both little changed from the same month in 2024. Among young Inuit living in Nunavut, the employment rate in May (28.1%) was down 7.5 percentage points compared with one year earlier.
