Canada’s unemployment rate fell to 4.9% in June, its lowest level since the data started being
tracked in 1976.
The economy lost 43,200 jobs in June, Statistics Canada said, which was a surprise negative
reading. Economists had forecast that the country would add 22,500 jobs during the month.
The job declines reflect the exit of workers from Canada’s labour market, which contracted by
100,000, the biggest one-month decline on record.
As a result, the average hourly wage rate rose 5.2% from a year ago, an increase from 3.9% in
May. The wage rate growth was the fastest increase recorded since that data began being
tracked in 1997.
The employment decline was primarily among self-employed workers, with their numbers
declining by 59,200. Losses were concentrated in the retail and wholesale sectors. The drops in
both employment and labour force participation were led by youth and older workers.
Canada’s labour force participation rate fell to 64.9% in June from 65.3% in May, also one of the
biggest monthly declines on record. Part-time employment fell by 39,100, while the number of
full-time employment declined by 4,000.
The drop in employment coincided with a decline in the number of unemployed Canadians. At
one million, there are fewer unemployed workers in Canada right now than at any time since
1981.
