Canada's labour market shows gains in wages but job losses persist

Average earnings rise, but employment dips and vacancies vary

Canada's labour market shows gains in wages but job losses persist

Canada’s labour market showed a mixture of growth and decline in June 2025 according to the latest data on payroll employment, earnings, and job vacancies from Statistics Canada.

Average weekly earnings for all employees, including overtime, rose to $1,302.11 in June, representing a 3.7% increase compared with the same month last year.

The largest gains were observed in Prince Edward Island, with a 7.9% increase, followed by New Brunswick at 5.4% and Quebec at 5.1%. Alberta and British Columbia experienced more modest growth, with weekly earnings rising 2.8% and 2.6%, respectively.

Despite these increases in wages, payroll employment fell by 32,900 jobs, a decline of 0.2% from May, with the loss was concentrated in the manufacturing, retail trade, and construction sectors, which shed 8,400, 8,100, and 5,200 jobs respectively. In contrast, public administration added 3,800 positions over the same period.

Job vacancies in Canada increased slightly, rising by 12,100, or 2.5%, to reach 492,000 in June. However, compared with June 2024, vacancies were down by 59,200, a 10.7% decline. The overall job vacancy rate edged up to 2.8% from 2.7% in May.

Sector-specific trends revealed that construction experienced a notable monthly increase in vacancies, growing by 4,600 positions or 13.1% to 39,500. However, this was still significantly below the peak of 89,000 vacancies seen in April 2022.

Year-over-year finance and insurance (+3,800; +21.8%) was the only sector to record an increase in vacancies while healthcare and social assistance saw a sharp decrease, dropping by 22,400, or 18.5%, marking their lowest level since March 2021.

Alberta recorded the largest increase in vacancies, adding 8,100 positions, while other provinces, including Ontario, saw little change. Vacancy rates were highest in Nova Scotia, Alberta, and Saskatchewan at 3.1%, while Newfoundland and Labrador, Prince Edward Island, New Brunswick, and Ontario reported rates between 2.2% and 2.6%.

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