Canada's labor market saw an unexpected rebound in June, adding a net 83,000 jobs and reversing months of stagnation, according to new data released on Friday by Statistics Canada.
The national unemployment rate fell to 6.9%, down from 7% in May, marking the first decline since January.
The figures significantly outperformed economists’ forecasts. Analysts had projected a modest job loss of about 3,000 and an uptick in unemployment to 7.1%.
June’s gains were driven largely by part-time positions and broad-based growth across several sectors and provinces, Statistics Canada said.
The overall employment rate ticked up to 60.9%, from 60.8% the previous month.
Wholesale and retail trade led the surge with 34,000 new positions, followed by health care and social assistance, up 17,000, and manufacturing, up 10,000, which showed resilience despite ongoing trade headwinds. Agriculture was the only major sector to report a notable decline, losing 6,000 jobs.
While 47,000 new roles were added in the private sector, a significant portion of the monthly job growth came from part-time positions, which increased by 70,000.
Job gains were concentrated among core-aged workers (25 to 54), with men gaining 62,000 jobs and women adding 29,000. Their unemployment rates fell to 6% and 5.3%, respectively.
Average hourly wages rose 3.2% year-over-year to $36.01, while total hours worked increased 0.5% from May and 1.6% compared to a year earlier.
Despite these gains, long-term unemployment remains elevated. As of June, 21.8% of unemployed Canadians had been seeking work for 27 weeks or more, up from 17.7% a year ago.
With labour market momentum returning, the probability that the Bank of Canada will reduce rates at its upcoming July 30 meeting appears reduced.