“Permanent layoffs are not significantly higher than a year ago, but workers are taking longer to find jobs, and there are clearer signs of job losses in sectors vulnerable to cross-border trade,” said Royal Bank of Canada economist Rachel Battaglia in a report last month. (Photo by Zou Zheng/Xinhua via Getty Images) · Xinhua News Agency via Getty Images
The number of Canadians leaning on employment insurance climbed in June, with regular EI beneficiaries rising 3.4 per cent to 541,000, Statistics Canada reported Wednesday. In the first half of 2025, EI recipients trended upwards, increasing 11 per cent over the period.
Compared with June 2024, the number of EI recipients was up by 62,000 (12.8 per cent). According to the Labour Force Survey, Canada’s unemployment rate rose 0.5 percentage points year-over-year to 6.9 per cent in June. For July, the unemployment rate held steady at 6.9 per cent, while the labour market lost a net 40,800 jobs.
The biggest monthly EI gain in June came from Canadians who last worked in sales and service occupations, where recipients increased by 5.4 per cent, or 4,800 people. That marked the fifth consecutive monthly increase for the category.
Manufacturing and utilities workers also saw a sharp rise, with beneficiaries up 11 per cent, or 4,300 people, mostly in Ontario.
“Permanent layoffs are not significantly higher than a year ago, but workers are taking longer to find jobs, and there are clearer signs of job losses in sectors vulnerable to cross-border trade,” said Royal Bank of Canada economist Rachel Battaglia in a report last month.
While tariff anxiety has hampered hiring intentions throughout the economy, actual job losses are largely concentrated in trade-related sectors, such as manufacturing, primary resources and transportation and warehousing, she adds.
Compared with June 2024, EI recipients were higher across all major occupational groups. The largest increases were among Canadians last employed in business, finance and administration occupations (25 per cent), followed by sales and service (17.3 per cent) and trades, transport and equipment operators (8.2 per cent).
By age, men aged 25 to 54 saw EI use increase 3.5 per cent in June, while women 55 and older posted a 12.2 per cent jump.
On a year-over-year basis, every major demographic group reported higher EI use in June 2025. The largest increases came from women 55 and older (21.7 per cent), women 25 to 54 (14.5 per cent), and men 25 to 54 (13 per cent).