Canadian Employment Remains Steady in May 2025 as Unemployment Rate Edges Up

Employment in Canada remained nearly unchanged in May 2025, according to Statistics Canada, with an employment rate of 60.8%. The national unemployment rate increased by 0.1 percentage points to 7.0%, which is the highest level recorded since September 2016, excluding periods affected by the COVID-19 pandemic.

Statistics Canada’s May Labour Force Survey shows continued stability in employment figures, but with an upward trend in unemployment and notable differences across provinces, age groups, and sectors. The information is based on a survey covering approximately 65,000 households nationwide.

Statistics Canada reported a total of 20,978,000 people employed across Canada in May. The number of unemployed people was 1.6 million, representing a 13.8% increase from May 2024. The average duration of unemployment rose to 21.8 weeks, compared to 18.4 weeks a year earlier. In May 2025, 46.5% of unemployed individuals had not worked in the past year or had never worked, up from 40.7% in 2024.

Provincial employment results were mixed. British Columbia gained 13,000 jobs (+0.4%), bringing its employment to 2,964,000 and its unemployment rate to 6.4%. Nova Scotia added 11,000 jobs (+2.1%) with an unemployment rate of 6.5%, and New Brunswick saw 7,600 more jobs (+1.9%) with a 6.3% unemployment rate. Quebec experienced a decrease of 17,000 jobs (-0.4%), while Prince Edward Island's employment dropped by 2,700 (-2.9%). Ontario’s employment level was largely unchanged at 8,199,000, with an unemployment rate of 7.9%. Major metro areas in Ontario had higher unemployment rates: Windsor at 10.8%, Oshawa at 9.1%, and Toronto at 8.8%.

In terms of employment type, full-time jobs grew by 58,000 (+0.3%), offset by a decline of 49,000 part-time jobs (-1.3%). Private sector employment increased by 61,000 (+0.4%). Public sector positions dropped by 21,000 (-0.5%), and self-employment declined by 30,000 (-1.1%).

Sector-specific data showed employment gains 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%). Decreases were reported in public administration (-32,000; -2.5%), accommodation and food services (-16,000; -1.4%), transportation and warehousing (-16,000; -1.4%), and business, building and other support services (-15,000; -2.1%).

Among core-aged women (25 to 54 years), employment increased by 42,000 (+0.6%), raising the employment rate for this group to 80.1%. For core-aged men, employment fell by 31,000 (-0.4%), with an employment rate of 86.0%. For Canadians aged 55 and older, employment figures saw little change both month-over-month and compared to the previous year.

The unemployment rate among returning students aged 15 to 24 in May was 20.1%, up 3.2 percentage points from the previous year. Most employed students in this group worked in retail trade (28.8%), accommodation and food services (20.5%), and information, culture and recreation (13.1%).

The employment rate for First Nations people aged 25 to 54 living off reserve in May was 68.2%. Among core-aged Métis, the employment rate was 81.1%, representing a 3.2 percentage point increase from the previous year. For Inuit of the same age group in Nunavut, the employment rate was 55.8%.

The Labour Force Survey for May 2025 is based on data collected during the week of May 11 to 17. Statistics Canada’s next Labour Force Survey release is scheduled for July 11, 2025.