Canada Adds 83,100 Jobs June Unemployment Rate Drops 6.9%

Canada's labor market demonstrated notable strength in June with an unexpected decline in the unemployment rate to 6.9%, marking the first decrease since January and surpassing expectations for a rise to 7.1%. The economy added a net 83,100 jobs, primarily driven by gains in part-time employment, with core-aged workers (ages 25-54) seeing significant increases in employment rates for both men and women. Key sectors contributing to job growth included wholesale and retail trade, which added 34,000 jobs, and health care and social assistance, which grew by 17,000 positions, while agriculture experienced a decline. Provincial job gains were robust in Alberta, Quebec, Ontario, and Manitoba, offsetting declines in Newfoundland and Labrador and Nova Scotia. These positive employment figures come amid escalating Canada-U.S. trade tensions, including President Donald Trump's announcement of a 35% tariff on Canadian goods effective August 1, which is influencing market expectations around the Bank of Canada's upcoming monetary policy decisions. Despite the overall strong employment numbers, long-term unemployment has increased, with over one in five unemployed Canadians searching for work for 27 weeks or more, highlighting ongoing challenges within the labor market.