Canada's unemployment rate rises to 6.4% as job market stalls

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Canada’s unemployment rate rose to 6.4 per cent in June from 6.2 per cent a month earlier, continuing an upward trend that began in April of 2023, Statistics Canada said on Friday.

Long-term unemployment in June was also elevated, with 17.6 per cent of currently unemployed workers out of work for 27 weeks or more. This suggests job seekers are having more difficulty finding jobs in a challenging labour market.

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Among youth, the unemployment rate has reached 13.5 per cent, the highest since September of 2014, with the exception of the pandemic years of 2020-2021. Returning students are also having trouble finding summer work, with unemployment among this group at 15.9 per cent.

Among provinces, Ontario’s unemployment increased to seven per cent in June. Alberta’s unemployment ticked down slightly to 7.1 per cent. Provinces and territories with the highest unemployment rates include Newfoundland and Labrador, Nunavut, Prince Edward Island and New Brunswick.

The month of June saw wage growth continue to increase, with average hourly wages up 5.4 per cent year-over-year, an acceleration from 5.1 per cent growth in May.

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Overall employment remained unchanged for the month of June, compared to the previous month. Industries that saw declines in employment include transportation, warehousing, culture and recreation, public administration, construction and professional and technical services.

Industries that saw increases in employment include accommodation, food services and agriculture.

• Email: jgowling@postmedia.com

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