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Canada Adds 18,200 Jobs in June as Unemployment Falls to 6.5%

The modest gain was led by part-time and youth hiring and higher wages, giving the Bank of Canada a final labour-market reading before its upcoming rate decision.

Overview

  • Statistics Canada reported the June labour force survey on Friday showing a net gain of about 18,000 jobs and a national unemployment rate that slipped to 6.5 percent.
  • Hiring was concentrated in part-time work and in accommodation and food services and wholesale and retail trade, while workers aged 15 to 24 added roughly 33,000 positions mostly in part-time roles.
  • Manufacturing and construction were the largest losers in June, together cutting close to 30,000 jobs, a continuation of a longer decline in factory employment tied to U.S. tariff uncertainty.
  • Average hourly wages for permanent employees rose 3.7 percent year over year in June, a pickup from May that bears directly on inflation readings the Bank of Canada watches.
  • The report is the last major economic data point before the central bank's policy meeting, and it leaves markets leaning toward a rate hold while highlighting uneven strength for young and service-sector workers and ongoing weakness in trade-exposed industries.