Canada's Unemployment Rate Rises to 7.0% in May 2025, Employment Largely Unchanged

Employment in Canada remained unchanged in May 2025, with 20,978,000 people employed, according to figures released by Statistics Canada.

Statistics Canada reported that the national unemployment rate rose by 0.1 percentage points to 7.0% in May, which is the highest rate recorded since September 2016, excluding the pandemic years of 2020 and 2021.

The number of unemployed people reached 1.6 million in May, an increase of 191,000, or 13.8%, compared to 12 months earlier. The average duration of unemployment increased to 21.8 weeks from 18.4 weeks in May 2024. Nearly half (46.5%) of those unemployed had not worked in the previous 12 months or had never worked, based on Statistics Canada's Labour Force Survey.

By province, employment increased in British Columbia (+13,000; +0.4%), Nova Scotia (+11,000; +2.1%), and New Brunswick (+7,600; +1.9%). Employment declined in Quebec (−17,000; −0.4%), Manitoba (−5,800; −0.8%), and Prince Edward Island (−2,700; −2.9%). In Ontario, employment levels were stable, with a provincial unemployment rate of 7.9%. Statistics Canada noted little change for other provinces in May.

Among core-aged workers (25 to 54 years), employment for women rose by 42,000 (+0.6%) while employment for men fell by 31,000 (−0.4%). Employment figures for youth (15 to 24 years) and for those aged 55 and older were little changed.

The unemployment rate among students aged 15 to 24 who intend to return to school in the fall was 20.1%, up 3.2 percentage points compared to May 2024. The rate for young women was 18.4%, while for young men it was 22.1%. Most employed returning students worked in retail trade (28.8%), accommodation and food services (20.5%), and information, culture and recreation (13.1%).

Across industries, employment gains were recorded 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%). Sectors that saw declines included public administration (−32,000; −2.5%), 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%).

The average hourly wage for employees in May was $36.14, reflecting a 3.4% increase ($1.20) from May 2024. Statistics Canada stated that total hours worked did not change compared to April, but were up 0.9% from a year earlier.

For First Nations people aged 25 to 54 living off reserve, Statistics Canada reported an employment rate of 68.2% in May, based on three-month moving averages and not seasonally adjusted. The employment rate among core-aged Métis was 81.1%, up 3.2 percentage points from May 2024. In Nunavut, the employment rate for core-aged Inuit was 55.8%, similar to the rate a year earlier. These Indigenous employment figures use three-month moving averages, as noted by Statistics Canada.

The May 2025 Labour Force Survey was conducted by Statistics Canada with a sample of about 65,000 households. Data were collected during the week of May 11 to 17, and all figures are seasonally adjusted unless otherwise noted.