Canada’s job growth came to a near stop in May 2025, with only 8,800 new positions added. At the same time, the unemployment rate rose to 7%, making it harder for many people to find work.
Canada added only 8,800 jobs in May 2025. That’s the smallest increase in months. The total number of employed people reached 20.97 million. The overall employment rate stayed stuck at 60.8%.
This flat trend followed strong job growth between October 2024 and January 2025. But now, the market seems to be losing steam.
While full-time jobs increased by 58,000, part-time positions dropped by 49,000. This shift means more steady jobs are available. But people who need flexible or short-term work are finding it harder.
The unemployment rate jumped to 7% in May. That’s the highest level since 2016, not counting the pandemic years. Around 1.6 million people were jobless last month. That’s a 13.8% rise from a year ago.
People are also taking longer to find work. The average job search now lasts about 22 weeks. Many of the unemployed haven’t worked in over a year—or ever.
Some sectors added jobs in May. Others cut back.
Industries with More Jobs:
Industries with Job Cuts:
Job numbers moved differently across regions.
Among people aged 25–54, women gained 42,000 jobs, while men lost 31,000. Men's unemployment rate also rose to 6.2%, the highest since 2018.
May usually kicks off the summer job season. But this year looks rough for students.
The unemployment rate for returning students aged 15–24 hit 20.1%. That’s one of the highest rates in recent history outside of the pandemic.
Male students faced a 22.1% jobless rate, while young women saw an 18.4% rate.
Most students worked in retail, restaurants, or recreation. But restaurant jobs dropped sharply this year.
The average hourly wage rose by $1.20 to $36.14. That’s a 3.4% jump over last year.
Total hours worked didn’t change much from April but increased slightly compared to May 2024.
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