Canada added 83,000 jobs. Here are the details and what it means for the staffing industry
Labour Force Survey - June 2025
Canada’s labour market roared back to life in June, signaling unexpected resilience in the face of mounting economic challenges. According to Statistics Canada, the economy added 83,000 jobs—a marked reversal from the flat or negative growth seen in recent months—and the unemployment rate slipped to 6.9% .
Despite the headline figure, much of the growth stemmed from part‑time work. About 70,000 of the 83,000 new positions were part‑time roles (+1.8%), highlighting a cautious labour‑market recovery still weighted toward flexible placements over full-time opportunities .
Gains were concentrated among core-aged Canadians (25–54). Men in this group saw 62,000 new jobs (+0.8%), while women saw 29,000 (+0.4%). Youth and workers over 55 experienced little change.
Retail and wholesale trade shone bright, adding 34,000 jobs (+1.1%), while health care and social assistance gained 17,000 positions (+0.6%). Notably, manufacturing rebounded with 10,500 new jobs, even amid trade tensions and tariff pressures. Only agriculture saw a notable decline, shedding 6,000 positions (–2.6%).
Job growth was strongest in Alberta (+30,000; +1.2%), Quebec (+23,000; +0.5%), Ontario (+21,000; +0.3%) and Manitoba (+8,500; +1.2%). In contrast, Newfoundland & Labrador and Nova Scotia saw declines of 3,500 and 3,400 jobs, respectively.
Total hours worked rose 0.5% month-over-month and 1.6% year-over-year, suggesting modest increases in labour utilization. Meanwhile, average hourly wages for permanent employees grew by 3.2% year-over-year, down from May’s 3.4%, clocking in around C$37.22–36.01 per hour.
The national unemployment rate ticked down 0.1 percentage points to 6.9%—the first drop since January. Yet long-term joblessness remains troubling: over one in five unemployed Canadians (21.8%) had been out of work for at least 27 weeks—up from 17.7% a year prior.
Finally, youth joblessness remains elevated as well. Students aged 15–24 returning to school this fall faced unemployment at 17.4% in June—up from 15.8% last year and the highest June rate since 2009, excluding the pandemic years.
Economists quickly noted the implications for monetary policy. The June jobs surge and resilient wage growth dampen the likelihood of a Bank of Canada interest rate cut at its July 30 meeting; markets now place the odds of a cut at under 20%. However, some analysts believe future cuts this year remain on the table unless inflation shows sharper signs of easing.
Despite the upbeat headline numbers, caution remains warranted. Employment has cooled since last year, and past soft patches—especially in manufacturing and agriculture—underscore the fragility beneath the surface. Further data on inflation and trade developments, especially amid U.S. tariff threats, will be pivotal.
In summary, June’s Labour Force Survey delivers a welcome jolt of job growth, particularly in trade, health care, and manufacturing, with core-aged workers leading the charge. Yet the uptick is driven largely by part-time positions, long-term unemployment remains elevated, and persistent trade-related uncertainties underscore the broader economy's fragility.
What it means for staffing firms
For staffing agencies, June’s rebound offers a nuanced opportunity. The strong uptick in part-time positions suggests that employers remain cautious, opting for flexible labour arrangements over long-term commitments—a scenario that typically benefits temp staffing firms. Industries like retail, health care, and manufacturing, which drove most of the job gains, are also among the most active users of contingent labour.
However, the persistence of long-term unemployment and weak youth hiring could further dampen demand for entry-level placements, especially in administrative and support roles. Staffing firms specializing in professional or permanent placements may also find growth uneven, as employers continue to scrutinize hiring decisions amid economic uncertainty. That said, provinces like Alberta and Quebec—both of which saw outsized gains—could offer near-term pockets of growth for firms with regional specialization.