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Jul 10, 2026 1:41 PM - Connect Newsroom - Ramandeep Kaur with files from The Canadian Press

Canada adds 18,200 jobs in June as unemployment rate falls to 6.5%

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The largest job gains were reported in wholesale and retail trade, as well as accommodation and food services, with younger workers benefiting the most from the hiring. (Photo: The Canadian Press)

Canada's labour market posted a net gain of 18,200 jobs in June, while the national unemployment rate declined to 6.5 per cent, according to Statistics Canada's Labour Force Survey released Friday. The increase follows a stronger gain of 87,800 jobs recorded in May.

According to Statistics Canada, employment growth in June was driven primarily by the services sector and part-time work. The largest job gains were reported in wholesale and retail trade, as well as accommodation and food services, with younger workers benefiting the most from the hiring.

Manufacturing continued to face pressure amid the impact of U.S. tariffs. Statistics Canada reported that the sector has lost approximately 61,000 jobs since reaching a recent peak in January 2025, highlighting ongoing challenges for export-oriented industries.

Economists said the latest figures suggest Canada's labour market has not fully regained strength but is showing signs of stability rather than a rapid slowdown. The employment data is expected to factor into the Bank of Canada's next interest rate decision, with financial markets increasingly anticipating the central bank will leave its policy rate unchanged at its meeting on Wednesday.

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