Unemployment in Canada ticked up to 6.4% in June, up 0.2% from the previous month and continuing a trend that began in April 2023, Statistics Canada said on Friday.
Employment was virtually unchanged for the month, down by 1,400, compared to Bloomberg estimates of a 25,000 gain.
The employment rate decreased by 1.3% to 61.1% in June from its recent high of 62.4% which was seen in January and February of 2023.
Employment increased for women aged 25 to 34, up 19,000 during the month, while it fell among young men aged 15 to 24.
Among youth, the unemployment rate was 13.5%, the highest since September of 2014 excluding during the pandemic 2020 and 2021.
There were declines in the number of people working in transportation and warehousing and public administration, as employment in accommodation and food services and agriculture increased.
Average hourly wages increased 5.4% in June on an annualized basis, up from 5.1% in May.
The report indicates Canada’s labor market is experiencing mixed signals, with rising unemployment, stagnating job growth, and demographic variations.
Sector-specific dynamics such as seasonal factors are also driving employment trends, for example in accommodation and food services.
The increase in wages indicates stronger demand in certain sectors is a silver lining, potentially supporting consumer spending against a backdrop of overall employment uncertainties.