Canada’s payroll employment dropped by 32,900 positions in June, marking a 0.2% decline after a modest gain the previous month, according to Statistics Canada data released Wednesday.
The employment decrease affected 10 of 20 sectors, with manufacturing leading losses at 8,400 jobs, followed by retail trade with 8,100 fewer positions. Construction and health care also posted significant declines, shedding 5,200 and 3,700 jobs respectively, the federal agency reported.
Despite the monthly decline, Canada’s year-over-year payroll employment remained positive, adding 41,000 jobs compared to June 2024, representing a 0.2% annual increase.
Manufacturing sector continues downward trend
Manufacturing has experienced persistent job losses since the start of 2025, with a cumulative decline of 26,600 positions through June, according to the data. Transportation equipment manufacturing led the sector’s losses with 6,100 fewer jobs since January.
Year-over-year manufacturing employment fell by 24,700 positions in June, a 1.6% decrease driven primarily by transportation equipment, machinery, and plastics manufacturing subsectors.
Retail trade extends decline pattern
Retail employment has followed a general downward trend from January through June, with an overall decline of 23,800 positions during that period, Statistics Canada reported. General merchandise retailers, food and beverage stores, and building supply retailers drove most of the sector’s job losses.
The retail sector’s year-over-year employment dropped by 26,900 positions in June, a 1.3% decrease from the previous year.
Construction employment down since December
Construction payroll employment has declined by 13,000 positions from December 2024 through June 2025, with specialty trade contractors accounting for the largest share of losses. The sector’s June decline of 5,200 jobs represented a 0.4% monthly decrease.
Wages rise despite employment decline
Average weekly earnings increased 3.7% year-over-year to $1,302 in June, accelerating from May’s 3.3% growth rate, the agency reported. Monthly earnings rose 0.7% in June, while average weekly hours worked remained stable at 33.4 hours.
Job vacancies show mixed signals
Job vacancies increased by 12,100 positions to reach 492,000 in June, partially offsetting declines recorded in April and May. However, year-over-year vacancies fell by 59,200 positions, a 10.7% decrease from June 2024.
The job vacancy rate reached 2.8% in June, up from 2.7% the previous month but down from 3.1% in June 2024. There were 3.2 unemployed persons for every job vacancy, compared to 3.3 in May.
Construction posted the month’s only significant vacancy increase, adding 4,600 open positions. Year-over-year, 11 sectors recorded vacancy declines, with health care and social assistance leading losses at 22,400 fewer openings.
Provincial variations in job market
Alberta was the only province to record a significant increase in job vacancies during June, adding 8,100 open positions. Seven provinces saw their job vacancy rates decline year-over-year, with Prince Edward Island, Manitoba, and British Columbia posting the largest decreases.
Nova Scotia, Alberta, and Saskatchewan maintained the highest provincial job vacancy rates at 3.1%, 3.1%, and 3.0% respectively in June.
