Canada Employment Update

May 2025 Overview

The Canadian employment landscape is constantly changing. Keep up-to-date with the most recent trends with our monthly Employment Update.

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    Employment remained the same

    The employment rate decreased at 60.8%.

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    Average hourly wages increased

    Average hourly wages among employees were up 3.4% (+$1.20 to $36.14).

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    Unemployment rose

    The unemployment rate rose 0.1 percentage point to 7%.

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    Employment increased in British Columbia

    Employment increased in British Columbia (+13,000; +0.4%), Nova Scotia (+11,000; +2.1%), and New Brunswick (+7,600; +1.9%), while it declined in Quebec (-17,000; -0.4%), Manitoba (-5,800; -0.8%), and Prince Edward Island (-2,700; -2.9%). There was little change in the other provinces in May.

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    Total hours worked rose

    Total hours worked rose 0.4% in April and were up .9% compared with 12 months earlier. On a year-over-year basis, total hours worked were up 3.6%.

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    Employment grew in wholesale and retail trade

    In May, employment grew in wholesale and retail trade (+43,000; +1.5%), information, culture and recreation (+19,000; +2.3%), finance, insurance, real estate, rental and leasing (+12,000; +0.8%) and utilities (+4,900; +3.1%). Employment fell in public administration (-32,000; -2.5%), accommodation and food services (-16,000; -1.4%), transportation and warehousing (-16,000; -1.4%) and business, building and other support services (-15,000; -2.1%).

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Industry Trends – ​ Remote Work Stabilization

Acara summarizes the latest industry trends each month to keep you informed as you make decisions about the future of your business.

  • Employment rate up for core-aged women, while it falls for core-aged men to lowest rate since 2018

    • Among core-aged women (25 to 54 years old), employment rose by 42,000 (+0.6%) in May, and the employment rate rose 0.5 percentage points to 80.1%. The increase in the month partially offset a strong employment decline recorded in the previous month (-60,000; -0.9%), which had driven the employment rate down 0.9 percentage points.

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    • Among core-aged men, employment fell by 31,000 (-0.4%) in May. This followed an increase of 24,000 (+0.3%) in April. The employment rate among core-aged men fell 0.5 percentage points to 86.0% in May, the lowest rate since August 2018 (excluding 2020 and 2021, during the COVID-19 pandemic).

  • Employment increases in British Columbia, down in Quebec

    • Employment in British Columbia rose by 13,000 (+0.4%) in May, following little change over the previous three months. The unemployment rate in the province was little changed at 6.4%. In Victoria, the unemployment rate (3.7%) was the lowest among Canada’s 20 largest census metropolitan areas (CMAs) in May (three-month moving averages). The unemployment rate in Vancouver (6.4%) was similar to the provincial average.

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    • Employment also increased in Nova Scotia (+11,000; +2.1%) and New Brunswick (+7,600; +1.9%) in May, and the unemployment rate fell in both provinces (down 0.7 percentage points to 6.5% in Nova Scotia and down 0.6 percentage points to 6.3% in New Brunswick).

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    • Employment decreased in Quebec (-17,000; -0.4%) in May, offsetting a similar-sized increase in April. Prior to April, employment in Quebec had held steady for four consecutive months. The unemployment rate in Quebec was little changed at 5.8% in May.

  • Youth face difficult start to summer job market

    • May marks the beginning of another summer student job season—an important source of income and work experience for many youth. From May to August, the Labour Force Survey collects labour market information about students who attended school full time in March and who intend to return to school full time in the fall. The month of May provides the first indicator of the summer job market, especially for older youth, as high-school students are still attending classes.

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    • In May, the unemployment rate among returning students aged 15 to 24 was 20.1%, an increase of 3.2 percentage points from May 2024 (not seasonally adjusted). The unemployment rate for this group has trended up each May from the record low of 11.4% in May 2022, which was observed during a tight labour market.

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