1.6 million people unemployed in Canada as jobless rate up to 7%

The national unemployment rate increased slightly in May, hitting seven per cent.

That’s up from 6.9 per cent in the previous month and 6.6 per cent at the beginning of the year.

Statistics Canada said that British Columbia’s rate also increased, from 6.2 per cent to 6.4 per cent.

The agency explained that there was an increase of 8,800 jobs nationwide, with the overall employment rate 60.8 per cent.

At seven per cent, the unemployment rate is the highest outside of the COVID-19 years since 2016.

There were 1.6 million people classed as unemployed in May, up 191,000 compared with 12 months earlier.

Cities across BC, meanwhile, recorded the following unemployment rates in May (April’s rate in brackets):

• Kelowna: 7.0 per cent (6.9)

• Kamloops: 8.5 per cent (6.3)

• Chilliwack: 5.9 per cent (6.1)

• Abbotsford-Mission: 7.0 per cent (6.8)

• Vancouver: 6.4 per cent (6.6)

• Victoria: 3.7 per cent (3.6)

• Nanaimo: 7.3 per cent (6.2)

StatCan also revealed that women between the ages of 25 and 54 – i.e., core-aged workers – fared considerably better than their male counterparts last month.

Employment among women in that age group increased by 42,000, while among men it declined by 31,000. That cohort of women had an unemployment rate of 5.7 per cent in May, while their male equivalents’ rate was 6.2 per cent.

Among youth and older people, meanwhile, employment numbers were “little changed.”

By sector, wholesale and retail trade saw an increase of 43,000 workers; information, culture and recreation 19,000; finance, insurance, real estate, rental and leasing 12,000; and utilities 4,900.

Employment fell in public administration (-32,000) and accommodation and food services, however.

Declines were also recorded in transportation and warehousing (-16,000) and business and building (-15,000).

Overall, the number of workers in the private sector increased by 61,000 in May, while the public sector saw a decline of 21,000.

StatCan attributed the decline in the public sector to the hiring of temporary workers for the federal election.

Average hourly wages across Canada rose 3.4 per cent annually in May, the same increase logged in April.

StatCan also pointed out in its report that students are facing a tough job market this summer, with more than 20 per cent unemployed in May.

The relatively gloomy jobs data come just two days after the Bank of Canada decided to hold its key interest rate at 2.75 per cent.

Its next rate decision is due on July 30.