Canada Adds 18,000 Jobs in June as Unemployment Rate Dips to 6.5%

Canada's economy added about 18,000 jobs in June, edging past economists' expectations for a 10,000 gain, while the unemployment rate slipped to 6.5%, matching its January level, according to Statistics Canada's Labour Force Survey. The increase followed an unusually strong 88,000 gain in May and was concentrated in part-time and service-sector roles, notably accommodation and food services, as well as a better-than-usual summer for youth employment, with workers aged 15 to 24 adding 33,000 positions. Manufacturing, however, shed 17,000 jobs and is down roughly 61,000 from its early-2025 peak amid tariff-related uncertainty in trade-exposed industries. Average hourly wages for permanent employees, a gauge the central bank watches closely, rose 3.7% from a year earlier. Economists cautioned against reading the report as a sign of strength, noting that some hiring may be temporary and linked to World Cup-related activity, and several said the data would do little to prompt the Bank of Canada to move interest rates. The report was policymakers' last major economic snapshot before the bank's rate decision, with the policy rate widely expected to stay at 2.25%.