Alberta accounts for nearly half of Canada’s June job gains as unemployment falls

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OTTAWA — Canada’s labour market took another step in the right direction in June, adding 18,000 jobs, including about 8,000 in Alberta, while the national unemployment rate edged lower.

Employment rose 0.1 per cent nationally last month, broadly in line with economists’ expectations, according to an analysis by TD Economics.

Alberta accounted for roughly 44 per cent of Canada’s net employment growth during the month.

The national unemployment rate declined to 6.5 per cent from 6.6 per cent, returning to where it began the year, while the labour force participation rate remained unchanged at 65 per cent.

TD Economics economist Maria Solovieva said the June report followed exceptionally strong employment growth in May and showed Canada’s labour market continues to make modest progress.

“Pulling back the lens, Canada’s labour market has made modest, but positive progress over the past year,” Solovieva wrote.

Private-sector employment increased during the month, while public-sector employment declined.

Accommodation and food services led employment gains, adding 15,000 positions.

Manufacturing remained a weak point in the labour market, losing 17,000 jobs in June.

TD Economics says manufacturing employment has fallen by 61,000 positions, or 3.2 per cent, since January 2025, when tariff uncertainty began weighing on the sector.

Average hourly wages increased 3.3 per cent from a year earlier, accelerating from annual growth of three per cent in May.

The June gains followed a much stronger increase of 88,000 jobs in May, suggesting Canada’s labour market is stabilizing after periods of weakness earlier in the year.

TD Economics said the latest report shows the economy continues to operate below capacity, with risks concentrated in industries exposed to international trade.

The bank expects the Bank of Canada to keep its policy interest rate unchanged at 2.25 per cent at its next meeting.

TD Economics said continued weakness in manufacturing and other trade-exposed industries should help offset inflationary pressures and allow the central bank to remain on the sidelines.