FX.co ★ Canada Unemployment Rate Unexpectedly Drops

In June 2025, Canada's unemployment rate declined to 6.9%, down from the nearly four-year high of 7% recorded in the previous month. This decrease defied forecasts that anticipated an increase to 7.1%. Marking the first reduction in unemployment since January, this development eased fears that economic uncertainties and US-imposed tariffs would further impair Canadian economic growth. The number of unemployed individuals decreased by 22,100 from the prior month, bringing the total to 1,552,500. In contrast, total employment saw a significant increase, rising by 83,100 to 22,613,700, which represents the most substantial growth since December. This surge in employment defied predictions that net employment figures would remain static. The rise was largely driven by the most significant increase in part-time jobs in three years, primarily within the wholesale and retail sectors. However, the rate of long-term unemployment remained higher than the previous year, with 21.8% of the unemployed population having been job searching for over six months. Meanwhile, the participation rate saw a slight uptick, increasing by 0.1 percentage point to 65.4%.