Canada Labour Market

Canada Labour Market Sees Sharp Turnaround in June 2025, Employment Up by 83,000

Canada labour market is back in motion. After months of stagnation, employment surged in June 2025 with a gain of 83,000 jobs, marking the first increase since January. Part-time work drove the rise, but full-time employment across provinces and key sectors also contributed to a stronger national employment rate of 60.9%. The unemployment rate also dipped slightly to 6.9%, reversing the upward trend seen in recent months. While some sectors slowed, overall momentum has picked up again, offering a much-needed boost for Canadian workers and newcomers alike.

Let’s explore what this means for job seekers, employers, and immigration hopefuls in today’s Canada labour market.

June 2025 Canada Labour Market in Numbers

IndicatorJune 2025Change
Employment+83,000+0.4%
Employment Rate60.9%+0.1%
Unemployment Rate6.9%-0.1%
Average Hourly Wage$36.01+$1.10 YoY
Total Hours Worked↑ 0.5%+1.6% YoY

Growth in Key Demographics: Core-Aged Workers Lead the Way

  • Core-aged men (25–54): +62,000 jobs (+0.8%), employment rate now at 86.6%
  • Core-aged women: +29,000 jobs (+0.4%), with employment rate at 80.3%
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Youth and seniors saw little change, but these mid-career gains show a strong return to workforce participation, particularly for families and skilled professionals.

Canada Labour Market Adds Jobs in Retail and Healthcare

Significant industry shifts were observed:

IndustryEmployment Change
Retail & Wholesale Trade+34,000 (+1.1%)
Healthcare & Social Assistance+17,000 (+0.6%)
Agriculture-6,000 (-2.6%)

Retail trade added over 38,000 jobs, continuing its second consecutive monthly growth. Healthcare—always a key sector for immigration—showed its first notable jump since late 2024.

Province-Wise Job Gains: Alberta, Quebec, Ontario Lead

ProvinceJobs AddedUnemployment Rate
Alberta+30,0006.8%
Quebec+23,0006.3%
Ontario+21,0007.8%
Manitoba+8,5005.5%
Newfoundland & Labrador-3,5009.9%
Nova Scotia-3,4006.7%

While the Windsor CMA saw an unemployment spike due to auto trade issues (11.2%), other regions saw relief and improvement, especially in full-time positions.

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Youth Employment Still Struggles

Despite overall gains, youth and returning students (15–24 years) continued to face high unemployment:

  • Returning students: 17.4% unemployment in June, highest since 2009 (excluding pandemic years)
  • Teen job seekers (15–16): 27.8% unemployment
  • Young adults (20–24): 12.3% unemployment

This signals a slow summer hiring season and ongoing difficulty for new entrants to secure early work experience.

Comparing Canada vs. US Labour Metrics

MetricCanada (Adjusted)US
Unemployment Rate5.7%4.1%
Employment Rate61.5%59.7%

Canada maintains a higher employment rate, driven largely by high female participation. But the unemployment gap with the US has slightly widened over the year.

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What This Means for the Canada Labour Market in 2025

  • Part-time work recovery is filling immediate gaps, but long-term growth depends on full-time hiring trends.
  • Healthcare and retail are still absorbing most new talent, crucial for those applying through occupation-specific immigration streams.
  • Regional strategies in Alberta and Ontario are driving growth, offering more options for newcomers and workers alike.
  • Youth unemployment remains a concern, but programs aimed at summer jobs and early-career support could bring relief later this year.

Canada Labour Market Picks Up Pace in June 2025

The June 2025 employment surge shows renewed energy in the Canada labour market, driven by growth across sectors and provinces. With falling unemployment and higher wages, the job market is slowly stabilising after months of uncertainty.

Whether you’re looking to move to Canada or already here seeking work, the current labour trends show encouraging signs, especially if you’re in healthcare, trades, or retail. Stay informed, stay prepared, and tap into the opportunities building up across the country.

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