Canada’s Unemployment Rate Hits 7%… What It Means for Job Seekers and the Economy
Job searching in Canada is tough right now, and today’s report shows exactly why.
Canada’s unemployment rate just hit 7%… the highest it’s been in 9 years (excluding the pandemic).
That means 1.6 million Canadians are currently out of work, a 13.8% increase from last year.
And Toronto is feeling it the most. It now has the highest unemployment rate of any major city in the country.
If you’ve been applying to jobs in Canada with no luck, you’re not alone.
Job seekers are now spending an average of 21.8 weeks to find work… That’s 5 months of searching (an increase from 18.4 weeks last year).
Student unemployment is 20.1% (way up from last year).
In May alone:
- 48,800 part-time jobs were lost
- 12,200 manufacturing jobs were cut… thanks to U.S. tariffs
With the job market cooling, the Bank of Canada might step in soon.
Here’s where things stand right now:
Average hourly wage: $36.14 (up 3.5% from last year)
Inflation (April): 1.7%
Interest rate: 2.75%
Next rate decision: July 30
Most economists think a rate cut is coming — here’s why:
The job market is softening
Trade uncertainty is still hurting hiring
Fewer people are getting hired each month
Even with some job gains, the signs are clear: A rate cut is looming.