Canada’s unemployment rate increased to 6.2% in May, despite adding 27,000 jobs, due to the population growing faster than job creation, according to Statistics Canada.
Ottawa: Canada’s unemployment rate increased to 6.2% in May, despite adding 27,000 jobs, due to the population growing faster than job creation, according to Statistics Canada. Key sectors such as health care, social assistance, finance, real estate, and food and accommodation saw job gains. However, these were offset by losses in construction, transportation, warehousing, and utilities. Notably, job growth was entirely in part-time positions (up 62,000), while full-time employment declined (down 36,000).
More Canadians are turning to part-time work out of necessity, with the rate of involuntary part-time workers rising to 18.2% from 15.2% a year earlier. This shift marks a departure from the post-pandemic recovery trend driven by full-time employment.
Youth employment also showed signs of weakness. The employment rate for returning students aged 20-24 dropped to 61% from 63.9% a year ago, coinciding with the start of the crucial summer job season.
Senior economist Brendon Bernard explains that established workers turning to seasonal or precarious work due to weakened employment prospects are crowding out students from typical entry-level positions, exacerbating challenges for young job seekers in a cooling economy.
Canada’s unemployment rate rose to 6.2% in May, with job growth limited to part-time positions. The rise in involuntary part-time work and a slow summer job season for youth highlight underlying labor market challenges amidst a cooling economy.