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Canada’s economy added 88,000 jobs and the unemployment rate fell \u200cback to 6.6 per cent in May, Statistics Canada data showed on Friday, defying widespread expectations and partially offsetting drops in employment so far this year.<\/p>\n
Canada had lost 112,000 net jobs in the first four months of 2026, but May’s big addition helped erase almost 80 per cent of the job losses posted since the year began. <\/p>\n
It’s the first significant employment gain since November, according to Statistics Canada.<\/p>\n
Analysts polled by Reuters had forecast the unemployment rate to hold at the six-month-high \u200blevel reached in April at 6.9 per cent and had predicted net additions of 10,000 \u2060jobs in May.<\/p>\n
The additions in May were fully \u2060concentrated \u2060in full-time work, which saw a net \u200baddition of 154,000 jobs, reversing almost all\u00a0of the first four months of net losses \u200bin the category,\u00a0Statistics Canada said. Part-time employment fell by 66,200.<\/p>\n
Canada’s economy \u2060has weathered an onslaught of U.S. tariffs and trade \u200cuncertainty for more than 12 months, hitting some crucial sectors hard and leading to job losses. It has also sucked hiring momentum and investments out from the broader economy.<\/p>\n
“This is an unambiguously strong report,” said Benjamin Reitzes,\u00a0BMO Economics managing director, in an investor note. “Canada continues to hold in.”<\/p>\n
However, he cautioned against too much excitement, as employment is only up 0.7 per cent year over year.<\/p>\n