Unemployment Rate in Canada 2025
Canada’s labor market in 2025 is navigating a critical phase marked by rising unemployment and mixed signals of recovery. As of June 2025, the national unemployment rate stands at 6.9%, signaling a notable increase from the post-pandemic lows of earlier years. This figure, while showing a modest improvement from May’s peak of 7.0%, represents the highest unemployment level since 2016 (excluding the pandemic period). The current labor conditions reflect the broader economic shifts Canada is undergoing—from inflation pressures and policy tightening to global uncertainties influencing hiring patterns and investment decisions.
The unemployment landscape reveals underlying structural challenges, such as persistent youth joblessness, rising long-term unemployment, and regional disparities. The Canadian labor force has expanded, yet job creation has not kept pace, particularly in full-time roles. With over 1.6 million people unemployed and 21.8% of them facing long-term joblessness, the 2025 employment scenario demands careful attention from policymakers and economists. Understanding the provincial breakdowns, age-specific trends, and sectoral employment changes is essential to shaping targeted strategies that support sustainable employment and economic resilience.
Facts About Canada’s Unemployment Rate in 2025
| Key Unemployment Facts | Statistics | Time Period |
|---|---|---|
| Current Unemployment Rate | 6.9% | June 2025 |
| Peak Unemployment Rate | 7.0% | May 2025 |
| Total Unemployed People | 1.6 million | June 2025 |
| Youth Unemployment Rate | 14.2% | June 2025 |
| Core-aged Women Unemployment | 5.4% | June 2025 |
| Core-aged Men Unemployment | 6.1% | June 2025 |
| Seniors Unemployment Rate | 5.4% | June 2025 |
| Long-term Unemployment | 21.8% of unemployed | June 2025 |
| Student Unemployment Rate | 17.4% | June 2025 |
| Employment Rate | 60.9% | June 2025 |
The table provides a comprehensive snapshot of the current labor market in Canada as of June 2025, reflecting key indicators across different demographics and labor force segments. The headline statistic—a national unemployment rate of 6.9%—represents a slight improvement from the May 2025 peak of 7.0%, indicating early signs of stabilization after a challenging period. Notably, 1.6 million Canadians are currently unemployed, a figure that underscores the labor market’s sluggish recovery. Among the most affected groups are youth (ages 15–24), who face an unemployment rate of 14.2%, more than double the national average, signaling persistent barriers to employment for younger Canadians entering the workforce.
Other demographic breakdowns show more nuanced trends. Core-aged women (25–54) have a relatively low unemployment rate of 5.4%, while core-aged men fare slightly worse at 6.1%, suggesting some gender-based variation in job market access. Seniors aged 55+ also have a 5.4% unemployment rate, which is notable given increasing trends in post-retirement workforce participation. Of greater concern is long-term unemployment, with 21.8% of unemployed Canadians having been out of work for 27 weeks or more, up significantly from the previous year. The student unemployment rate stands at 17.4%, indicating a particularly tough summer job market for returning students. Meanwhile, the employment rate sits at 60.9%, reflecting overall workforce engagement and providing important context for how many Canadians are actively working relative to the total population. Together, these figures highlight the complexity and regional variability of Canada’s employment environment in 2025.
Provincial Unemployment Rate Variations in Canada 2025
| Province | Unemployment Rate | Monthly Change | Employment Change |
|---|---|---|---|
| Ontario | 7.8% | Little changed | +21,000 (+0.3%) |
| Quebec | 6.3% | +0.5 percentage points | +23,000 (+0.5%) |
| Alberta | 6.8% | -0.6 percentage points | +30,000 (+1.2%) |
| Nova Scotia | 6.7% | Little changed | -3,400 (-0.6%) |
| Manitoba | 5.5% | -0.4 percentage points | +8,500 (+1.2%) |
| Newfoundland and Labrador | 9.9% | Little changed | -3,500 (-1.4%) |
The provincial unemployment data reveals significant regional disparities in Canada’s labor market performance during 2025. Employment increased in Alberta (+30,000; +1.2%), Quebec (+23,000; +0.5%), Ontario (+21,000; +0.3%) and Manitoba (+8,500; +1.2%), demonstrating stronger economic momentum in these provinces. These employment gains reflect regional economic strengths and varying recovery patterns across different provincial economies.
However, the data also highlights challenges in certain regions. Employment fell in Newfoundland and Labrador (-3,500; -1.4%) and in Nova Scotia (-3,400; -0.6%), indicating ongoing economic difficulties in these Atlantic provinces. The unemployment rate variations across provinces underscore the importance of region-specific employment policies and economic development strategies to address local labor market conditions effectively.
Age Group Employment Patterns in Canada 2025
| Age Group | Unemployment Rate | Employment Rate | Key Changes |
|---|---|---|---|
| Youth (15-24 years) | 14.2% | N/A | Up 0.7 percentage points year-over-year |
| Core-aged Men (25-54) | 6.1% | 86.6% | Employment +62,000 (+0.8%) |
| Core-aged Women (25-54) | 5.4% | 80.3% | Employment +29,000 (+0.4%) |
| Seniors (55+ years) | 5.4% | N/A | Up 0.3 percentage points year-over-year |
| Returning Students (15-24) | 17.4% | N/A | Up from 15.8% in June 2024 |
The age-based unemployment analysis reveals distinct patterns across different demographic groups in Canada’s workforce. Employment increases in June were concentrated among people in the core working age (25 to 54 years old), with particularly strong performance among core-aged men who saw employment increased by 62,000 (+0.8%). This demographic represents the backbone of Canada’s workforce and their employment gains signal positive economic momentum.
Youth unemployment remains a persistent challenge, with the youth unemployment rate held steady at 14.2% in June and was up 0.7 percentage points on a year-over-year basis. This rate remained significantly above its pre-pandemic average of 10.8% recorded from 2017 to 2019, highlighting the ongoing difficulties young Canadians face in securing employment opportunities and establishing their careers in the current economic environment.
Sectoral Employment Changes in Canada 2025
| Industry Sector | Employment Change | Percentage Change | Annual Growth |
|---|---|---|---|
| Wholesale and Retail Trade | +34,000 | +1.1% | +84,000 (+2.9%) |
| Health Care and Social Assistance | +17,000 | +0.6% | +78,000 (+2.8%) |
| Agriculture | -6,000 | -2.6% | Little changed |
| Private Sector | +47,000 | +0.3% | N/A |
| Public Sector | +23,000 | +0.5% | N/A |
The sectoral employment data reveals which industries are driving Canada’s economic recovery and employment growth in 2025. Employment in wholesale and retail trade increased by 34,000 (+1.1%) in June, the second consecutive monthly gain, with the increase concentrated in retail trade which gained 38,000 positions. This sector’s strength reflects consumer spending patterns and the resilience of Canada’s retail economy.
Healthcare and social assistance also demonstrated robust growth, with employment also rose in health care and social assistance (+17,000; +0.6%) in June, the first notable change since December 2024. This growth reflects ongoing demand for healthcare services and social support programs, particularly important given Canada’s aging population and continued health system pressures following the pandemic period.
Canada-US Unemployment Comparison in 2025
| Country | Unemployment Rate | Employment Rate | Monthly Change |
|---|---|---|---|
| Canada | 5.7% (US concepts) | 61.5% | -0.1 percentage points |
| United States | 4.1% | 59.7% | -0.1 percentage points |
| Canada (Standard) | 6.9% | 60.9% | -0.1 percentage points |
| Gap (Canada-US) | +1.6 percentage points | +1.8 percentage points | Increased over year |
The international comparison provides crucial context for understanding Canada’s unemployment performance relative to its largest trading partner. Adjusted to US concepts, the Canadian unemployment rate for people aged 16 years and older declined 0.1 percentage points to 5.7% in June, while in the United States, the unemployment rate also edged down 0.1 percentage points to 4.1%. This comparison shows that Canada’s unemployment rate remains higher than the United States when measured using comparable methodologies.
However, Canada maintains advantages in other employment metrics. The employment rate was 61.5% in Canada in June, compared with 59.7% in the United States, reflecting higher workforce participation rates. This difference is particularly pronounced among women, with the employment rate in June of women aged 25 to 54 years (adjusted to US concepts) was 80.3% in Canada and 75.2% in the United States, demonstrating the success of Canadian policies in supporting women’s workforce participation.
Employment Growth Trends in Canada 2025
| Employment Metric | Current Status | Monthly Change | Annual Change |
|---|---|---|---|
| Total Employment | 20.3 million | +83,000 (+0.4%) | +1.6% |
| Full-time Employment | N/A | +13,000 | N/A |
| Part-time Employment | N/A | +70,000 (+1.8%) | N/A |
| Total Hours Worked | N/A | +0.5% | +1.6% |
| Average Hourly Wages | $36.01 | +3.2% (+$1.10) | +3.2% |
The employment growth data reveals important trends in Canada’s labor market recovery during 2025. Employment rose by 83,000 (+0.4%) in June, the first increase since January, marking a significant turning point after several months of stagnation. Notably, employment growth was concentrated in part-time work (+70,000; +1.8%), which suggests that while job opportunities are returning, many may not provide the full-time security that workers prefer.
Wage growth continues to show positive momentum, with average hourly wages among employees increased 3.2% (+$1.10 to $36.01) on a year-over-year basis in June. This wage growth rate indicates that Canadian workers are seeing real improvements in their earning power, though it remains important to consider this growth against inflation rates to determine the actual purchasing power gains for Canadian families and individuals.
Historical Unemployment Rate Trends in Canada: Last 10 Years (2015-2024)
| Year | Annual Unemployment Rate | Key Economic Context | Notable Changes |
|---|---|---|---|
| 2015 | 6.9% | Oil price decline impact | Economic headwinds |
| 2016 | 7.0% | Continued commodity challenges | Slight increase |
| 2017 | 6.3% | Economic recovery begins | Improvement trend |
| 2018 | 5.8% | Strong economic growth | Continued decline |
| 2019 | 5.7% | Pre-pandemic stability | Stable low levels |
| 2020 | 9.5% | COVID-19 pandemic impact | Historic spike |
| 2021 | 7.5% | Pandemic recovery phase | Significant decline |
| 2022 | 5.3% | Post-pandemic recovery | Near historic lows |
| 2023 | 5.4% | Economic stabilization | Slight increase |
| 2024 | 6.3% | Rising economic pressures | Upward trend |
Over the past decade, Canada’s unemployment rate has reflected a dynamic interplay of economic cycles, global disruptions, and recovery efforts. From 2015 to 2019, the country experienced a gradual improvement in labor market conditions, with the unemployment rate declining from 6.9% to 5.7%. This positive trend was fueled by stable economic growth, increasing consumer confidence, and job creation in key industries. Despite a slight rise in 2016 due to ongoing commodity-related challenges, the years that followed saw consistent progress, with 2018 and 2019 marking some of the lowest unemployment rates in recent history—signaling a period of near-full employment and economic stability.
However, this stability was sharply disrupted in 2020, when the COVID-19 pandemic led to a dramatic surge in unemployment to 9.5%, the highest level in decades. This spike reflected the immediate and widespread impact of lockdowns and economic shutdowns across Canada. The labor market began its recovery in 2021, supported by government relief programs and vaccine rollouts, bringing the unemployment rate down to 7.5%. By 2022, the economy had rebounded strongly, reaching 5.3%, one of the lowest rates in the series. Yet, the momentum slowed again in 2023 and 2024, with rising interest rates, inflationary pressures, and slowing global demand pushing unemployment back up to 6.3%. These recent increases underscore the challenges of sustaining growth amidst economic tightening and shifting global conditions.
Economic Recovery and Recent Challenges in Canada’s Unemployment Rate 2025
| Recovery Phase | Unemployment Rate | Economic Drivers | Policy Response |
|---|---|---|---|
| 2021 Recovery | 7.5% | Vaccine rollout, reopening | Fiscal stimulus |
| 2022 Strong Growth | 5.3% | Pent-up demand, hiring surge | Monetary tightening |
| 2023 Normalization | 5.4% | Labor market stabilization | Balanced approach |
| 2024 Pressures | 6.3% | Inflation concerns, rate hikes | Cautious policy |
| 2025 Current | 6.9% (June) | Economic adjustment | Monitoring phase |
The recovery period from 2021 to 2022 demonstrated Canada’s economic resilience, with the unemployment rate falling dramatically from 7.5% to 5.3%, one of the lowest rates in decades. This rapid improvement reflected the effectiveness of government support programs, successful vaccine deployment, and the reopening of the economy. The 2022 unemployment rate of 5.3% represented near full employment conditions and highlighted the strength of Canada’s labor market recovery.
However, the recent trend from 2023 to 2025 shows renewed challenges, with the unemployment rate gradually increasing from 5.4% to the current 6.9%. This upward trajectory reflects the impact of monetary policy tightening, inflation concerns, and global economic uncertainties that have cooled the labor market. The current 6.9% rate in June 2025 brings Canada’s unemployment back to levels not seen since the pre-pandemic period, indicating the cyclical nature of labor market conditions and the ongoing economic adjustments in response to changing monetary and fiscal policies.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
