Canadian employment saw a major upswing from the previous month, with the economy gaining 88,000 jobs (+0.4 per cent) to 21.122 million in May. The employment rate rose by 0.2 points to 60.7 per cent, while the unemployment rate fell by 0.3 points to 6.6 per cent. Average hourly wages rose 3.0 per cent year-over-year to $37.24 in May.
           
Employment in B.C. increased by 0.9 per cent to about 2.929 million, with the provincial economy gaining over 25,000 jobs in May. Employment in Metro Vancouver also rose by 0.9 per cent to 1.692 million. The unemployment rate in B.C. held steady at 6.8 per cent, while Vancouver's unemployment rate fell by 0.6 points to 6.4 per cent in May. 

May’s jobs report was a sight for sore eyes for a Canadian labour market that had cumulatively lost over 100,000 jobs over the previous four months. Crucially, the private sector added 56,000 jobs in May, the largest monthly increase since last October. Moreover, the unemployment rate moderated back to 6.6 per cent, unwinding most of the upward pressure seen through the first third of the year. Altogether, this report, albeit very strong, muddies the waters for the Bank of Canada in light of two consecutive quarters of negative growth. It’s worth noting that even with May’s upswing in employment, Canada has still lost more jobs than it has gained on a cumulative basis in 2026, continuing a trend of sharp monthly volatility in the labour market. Nonetheless, we expect another rate hold later this month, as the Bank has set a precedent for caution against policy adjustments as they try balancing the double-sided risks facing the economy.