Unemployment rate in Canada increases to 6.2% in May, with economy gaining 27,000 jobs

The Canadian job market is showing signs of weakness, with the unemployment rate increasing to 6.2 per cent in May. Despite adding 27,000 jobs last month, it was not enough to prevent the rate from rising. High interest rates are affecting consumers and businesses, causing a softening of the job market.

According to the labour force survey, only a quarter of those who were unemployed in April found work the next month, below the pre-pandemic average. Many Canadians are turning to part-time work as they struggle to find better options, with the involuntary part-time rate increasing to 18.2 per cent in May from 15.4 per cent the previous year.

Young people have been particularly impacted by the job market slowdown, with employment rates for returning students aged 20 to 24 decreasing by 2.9 per cent compared to a year ago. However, wage growth has remained strong, with average hourly wages increasing by 5.1 per cent from a year ago, reaching $34.94.

In terms of industries, employment saw gains in health care and social assistance, finance, insurance, real estate, rental and leasing, business, building and other support services as well as accommodation and food services. Conversely, employment fell in construction

By Sophia Gonzalez

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