FX.co ★ Canada Unemployment Rate Rises to Near 4-Year High

In May 2025, Canada's unemployment rate climbed to 7.0%, a rise from April's 6.9%, marking the highest unemployment rate since September 2021. This surpassed market predictions, which anticipated the rate would hold steady at 6.9%. The uptick in unemployment was driven by a notable increase in the number of jobless individuals, now totaling 1,600,000—a surge of 51,900. This development suggests businesses are beginning to feel the strain of tariffs enforced by the United States. Nevertheless, net employment saw a slight uptick, increasing by 8,800 jobs, which was more than the forecasted 5,000. This increment offset much of the previous month’s job losses, which amounted to 32,600. The manufacturing sector bore the brunt of job cuts, with a net decrease of 12,200 jobs, largely due to steep tariffs impacting the aluminum, steel, and automotive industries. Despite these challenges, the labor force participation rate remained stable at 65.3%.