Economy adds 88,000 jobs as jobless rate falls

Canada added 88,000 jobs in May, more than triple what economists had expected, marking a significant rebound in the labour market after months of weakness.

The unemployment rate fell to 6.6 per cent from 6.9 per cent in April, Statistics Canada reported Friday. The gains represent the first significant employment increase since November 2025; the economy had shed 112,000 net jobs across the first four months of 2026.

Economists had broadly expected a more modest gain of 10,000 jobs and anticipated the unemployment rate would hold steady. May's growth was concentrated in full-time work and was widespread across industries.

Construction led the gains with 27,000 jobs, followed by information, culture and recreation and transportation and warehousing. Tariff-sensitive manufacturing also posted job gains. The wholesale and retail trade sector took the heaviest hit with a loss of 35,000 positions.

Average hourly wages rose three per cent in May, down from 4.5 per cent in April. Youth are seeing a better start to the summer job season this year. Workers aged 15 to 24 added 99,000 full-time positions in May, with the age group's unemployment rate falling to 13.4 per cent—still above the pre-pandemic average of 10.8 per cent.

The data comes a week before the Bank of Canada's interest rate decision.