Canada’s payroll employment rose by 15,300 jobs in May, a 0.1 per cent increase from April, according to new data from Statistics Canada. But job vacancies fell again, dropping to their lowest level in nearly eight years.
The number of employees receiving pay and benefits rose in health care and social assistance (+6,200), retail trade (+5,600) and construction (+1,200). These gains were partially offset by job losses in manufacturing (-6,400), administrative and support services (-3,500), and wholesale trade (-2,900).
Health care continues to trend upward
Employment in the health care and social assistance sector rose for the second month in a row, driven by gains in ambulatory health care services (+3,100) and nursing and residential care facilities (+2,200). Hospitals held steady after posting a gain of 3,500 jobs in April. Since September 2022, payroll employment in the sector has increased by more than 236,000 positions.
Retail jobs bounce back after early-year losses
Retail trade saw a net gain of 5,600 jobs in May, following four months of losses totalling 16,700 positions. The latest increase was led by building material and supplies dealers (+2,500), health and personal care retailers (+2,500), and clothing stores (+2,000). These were offset by a 1,800-job decline in department stores.
Construction grows modestly
Construction added 1,200 payroll jobs in May, following smaller gains in March and April. The biggest increases came from building equipment contractors (+1,400) and foundation, structure, and building exterior contractors (+1,000), while residential building construction lost 900 jobs. Compared to December, the sector remains down by 9,400 positions.
Manufacturing and wholesale trade decline
Manufacturing continued to shrink, shedding 6,400 jobs in May. Since December, the sector has lost 19,400 jobs, with transportation equipment manufacturing (-5,600), chemical manufacturing (-2,900), and fabricated metal product manufacturing (-2,400) leading the decline.
Wholesale trade employment fell by 2,900 jobs in May and has dropped by 6,600 since December, led by losses in machinery, equipment and supplies wholesalers.
Earnings rise, but pace slows
Average weekly earnings were $1,294 in May, up 3.3 per cent year over year. This is down from a 4.3 per cent annual increase in April. Weekly hours worked averaged 33.3 in May, slightly below April’s figure of 33.5.
Job vacancies down sharply
Job vacancies fell by 20,400 in May to 478,200, marking the lowest level since October 2017. Vacancies have declined by 15.8 per cent compared to May 2024. The job vacancy rate dropped to 2.7 per cent, down from 2.8 per cent in April.
The number of unemployed persons per job vacancy rose to 3.3, the highest ratio since January 2017 outside of the COVID-19 period. That’s up from 3.1 in April, driven by a rise in unemployment and a fall in open positions.
Vacancies decline in key sectors and provinces
Construction saw the largest monthly drop in job vacancies, down 5,400 (-13.5%) in May—the first decline in the sector since August 2024. Other significant drops occurred in professional, scientific and technical services (-4,100) and mining, quarrying and oil and gas extraction (-900).
Job vacancies rose in finance and insurance (+3,400) and wholesale trade (+2,800).
Quebec recorded the largest provincial drop in vacancies in May (-12,800). Year over year, Saskatchewan, Alberta and British Columbia posted the biggest declines in job vacancy rates. Newfoundland and Labrador had the highest unemployment-to-vacancy ratio at 6.8.
