Canadian economy adds 88,000 jobs in May, defying economists' expectations

Canada's economy added 88,000 jobs and the unemployment rate fell ‌back to 6.6 per cent in May, data showed on Friday, defying widespread expectations and showing signs of some resilience despite softer economic growth.

Before this, Canada lost 112,000 net jobs in the first four months of 2026, so May's big addition helped erase almost 80 per cent of the job losses posted since the year began. It's the first significant employment gain since November 2025, according to Statistics Canada.

Analysts polled by Reuters had forecast the unemployment rate to hold at the six-month high ​level reached in April at 6.9 per cent and had predicted net additions of 10,000 ⁠jobs in May.

Canada's economy ⁠has weathered an onslaught of U.S. tariffs and trade ‌uncertainty for more than 12 months, hitting some crucial sectors very hard and leading to job losses. It has also sucked hiring momentum and investments out from the broader economy.

The additions were fully ⁠concentrated ⁠in full-time work, which saw a net ​addition of 154,000 jobs in May, reversing almost all of the first four months of net losses ​in the category, Statistics Canada said. Part-time employment fell by 66,200.

Much of the job creation came from the construction industry, which added a net 26,800 jobs, as well as information, culture and recreation, which saw an addition of 19,300 jobs. Transportation and warehousing saw gains of 18,700 jobs, while accommodation and food services grew by 17,000.

On the other side of the ledger, the wholesale ​and retail trade sector, which accounts for almost 14 per cent of the total employed work force, posted a job decline of 35,000 positions in ⁠May.

More to come.