Statistics Canada reported that in May, the unemployment rate in Canada increased to 6.2 per cent, up slightly from 6.1 per cent in April. Despite the addition of 27,000 jobs to the economy, the labour force survey indicates that the job market is weakening due to high interest rates impacting both consumers and businesses. The report also notes that fewer unemployed individuals were able to find work in May compared to pre-pandemic averages for the same month.
Despite the challenges in the job market, wage growth remained strong in May, with average hourly wages increasing by 5.1 per cent from a year ago to reach $34.94. The Bank of Canada recently decided to lower interest rates for the first time in four years, citing easing inflation and a weakening economy as reasons for the move.
This data was released by The Canadian Press on June 7, 2024, providing an insight into the current state of the Canadian economy and job market.