Update on the 2025 Canada Job Market: May Labour Force Survey

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Statistics Canada’s newest Labour Force Survey reports that the Canadian unemployment rate rose by 0.1 percentage point between April 2025 and May 2025, from 6.9 to 7.0 per cent – which, the agency noted, marks the country’s highest unemployment rate since September 2016 (excluding 2020 and 2021, during the COVID-19 pandemic).

The number of employed Canadians rose by 8,800, a gain so statistically insignificant Statistics Canada reported the employment rate as unchanged from last month: 60.8 per cent.

May’s numbers are the fourth in a row to indicate a challenging environment for unemployed Canadians, with only 7,400 jobs added between March and April 2025, a significant loss of 33,000 full-time jobs between February and March 2025, and full-time employment gains of only 1,100 between January and February 2025.

Fortunately, 279,800 more people were working in May 2025 compared with May 2024, according to Statistics Canada – a year-over-year gain of approximately 1.3 per cent.

For more context on the Canada job market's evolution over the past three months, check out our previous updates:

Update on the 2025 Canada Job Market: April Labour Force Survey

Update on the 2025 Canada Job Market: March Labour Force Survey

Update on the 2025 Canada Job Market: February Labour Force Survey

You can also find the latest Canada job market data, updated monthly, on our Labour Market Overview page.

Public administration, accommodation sectors post biggest losses in May 2025

On a sector-specific basis, the Canada job market’s largest employment losses in May came from the public administration sector, which lost 32,200 full-time jobs between April and May – a monthly decline of 2.5 per cent.

The second-largest decline was in the accommodation and food sector, which lost 16,400 positions between April and May (a 1.4 per cent monthly loss).

Other industries that reported significant job losses in May 2025, according to Statistics Canada, include:

Transportation and warehousing: 15,500 jobs lost (1.4 per cent loss)

Business, building and other support services: 14,000 jobs lost (2.0 per cent loss)

Manufacturing: 12,200 jobs lost (0.7 per cent loss)

Construction: 7,400 jobs lost (0.5 per cent loss)

Agriculture: 2,500 jobs lost (1.1 per cent loss)

Services other than public administration; accommodation and food; business, building and other support; (mentioned above); and health care and social assistance; professional, scientific and technical; and educational (mentioned below): 300 jobs lost (statistically insignificant in a sector that employs approximately 777,500)

Meanwhile, employment rose by 42,800 in wholesale and retail trade (a 1.4 per cent monthly gain). Employment also increased by 19,300 between April and May in information, culture and recreation (a 2.2 per cent monthly gain).

Other industries that posted gains last month included:

Finance, insurance, real estate, rental and leasing: 12,400 jobs added (0.8 per cent gain)

Health care and social assistance: 10,300 jobs added (0.4 per cent gain)

Professional, scientific and technical services: 9,900 jobs added (0.5 per cent gain)

Educational services: 6,100 jobs added (0.4 per cent gain)

Utilities: 4,900 jobs added (three per cent gain)

Natural resources: 4,300 jobs added (1.3 per cent gain)

Canada’s unemployment rate changes to 7.0 per cent

Statistics Canada’s May 2025 Labour Force Survey reported that Canada’s national unemployment rate changed from 6.9 per cent to 7.0 per cent between April and May.

However, while the job market in Canada has been difficult for many sectors, the unemployment rates for skilled professionals – including the specializations supported by Robert Half Canada’s staffing experts – continue to be well below the national average.

Unemployment rates by profession:

Business, finance and administration occupations, which includes finance and accounting, HR, and administration and customer service roles: 3.6 per cent (3.3 per cent in April 2025)

Natural and applied sciences and related occupations, which includes technology roles: 3.3 per cent (unchanged from April 2025)

Management occupations, which includes marketing and creative roles: 2.2 per cent (2.1 per cent in April 2025)

Occupations in education, law and social, community and government services, which includes legal roles: 2.4 per cent (2.2 per cent in April 2025)

Customer support roles, which fall outside the above Statistics Canada categories: 4.9 per cent (unchanged from April 2025)

On a provincial basis, employment rose in British Columbia by 13,000 (a 0.4 per cent gain), following few changes during the previous three months. However, a 0.5 per cent increase in the labour force participation rate – people looking for work – saw its unemployment rate rise from 6.2 per cent in April to 6.4 per cent in May.

Employment also rose in Ontario, albeit very slightly, by 3,400 – a statistically insignificant change among a labour force of approximately 8.9 million – while a growing labour force and unchanged participation rate meant its unemployment rate rose equally slightly, from 7.8 per cent in April to 7.9 per cent in May. This followed two monthly declines in employment, of 35,000 between March and April and 28,000 between February and March.

Meanwhile, employment decreased in Quebec by 17,000 (a 0.4 per cent monthly decline), offsetting April’s 18,000 increase. Statistics Canada noted that prior to April, Quebec’s employment rate had remained steady for four consecutive months. Thanks to a reduced labour force, the province’s unemployment rate still dropped slightly, from 6.0 per cent in April to 5.8 per cent in May.

Unemployment rates by province:

British Columbia: 6.4 per cent (6.2 per cent in April 2025)

Alberta: 7.4 per cent (7.1 per cent in April 2025)

Saskatchewan: 4.2 per cent (4.3 per cent in April 2025)

Manitoba: 5.9 per cent (5.3 per cent in April 2025)

Ontario: 7.9 per cent (7.8 per cent in April 2025)

Quebec: 5.8 per cent (6 per cent in April 2025)

New Brunswick: 6.3 per cent (6.9 per cent in April 2025)

Prince Edward Island: 8.2 per cent (6.6 per cent in April 2025)

Nova Scotia: 6.5 per cent (7.2 per cent in April 2025)

Newfoundland and Labrador: 9.7 per cent (9.6 per cent in April 2025)

Need more context on the job market in Canada’s evolution over the past three months? Check out our previous updates:

Update on the 2025 Canada Job Market: April Labour Force Survey

Update on the 2025 Canada Job Market: March Labour Force Survey

Update on the 2025 Canadian Job Market: February Labour Force Survey

Employer and worker confidence remain steady — and so is hiring

While many of the Canada job market's latest numbers continue to indicate a challenging economic climate, the unemployment rates for skilled professionals align with Robert Half Canada's newest Demand For Skilled Talent report, which found that nearly half – 46 per cent – of Canadian companies plan to add new permanent positions in the first half of 2025, while another 49 per cent plan to fill vacated positions and 54 per cent are increasing the number of contract professionals they enlist to support new projects during the same period.

Among hiring managers who plan to increase headcount, nearly half (47 per cent) cited company growth as the primary factor, while employee turnover rates (44 per cent), and new projects (41 per cent) were also identified as key factors.

Meanwhile, a Robert Half survey of 1,500 Canadian professionals found that 38 per cent have either started or are planning to start searching for a new job in the first half of 2025, while an additional 39 per cent say they are open to a new role if the right opportunity arises. The top reasons they cited for wanting a new position were:

A higher salary (41 per cent)

Better perks and benefits (31 per cent)

More remote flexibility than what their company offers (27 per cent)

Greater professional development opportunities (20 per cent)

For organizations seeking to hire these skilled professionals, the message is clear: Competition for top talent remains fierce and is likely to continue throughout the year. That’s why according to the 2025 Canada Salary Guide From Robert Half, companies are responding by offering the following:

Hybrid jobs (39 per cent)

Flexible work schedules (37 per cent)

Increased starting salaries (32 per cent)

New perks and benefits (30 per cent)

Numbers you can count on

Get the report

Our latest Demand for Skilled Talent report provides Canadian employers with the latest employment trends and challenges across six professional fields: finance and accounting, technology, marketing and creative, legal, administrative and customer support, and human resources.

Access the Guide

The 2025 Canada Salary Guide From Robert Half covers Canadian hiring and compensation trends across the six fields as well, incorporating exclusive data and input from surveys of thousands of Canadian workers and hiring managers, along with salary information for professionals we’ve matched with employers across the country.

Whether you’re launching a job search, actively hiring talent or developing a staffing strategy for your business, there’s no better source of insights into today’s salary and hiring trends.

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