Canada Adds 87,800 Jobs in Surprise Economic Rebound

Canada defied market expectations in May by adding 87,800 jobs, a surge that pushed the national unemployment rate down to 6.6%. The data, released Friday, vastly outpaced analyst forecasts of 10,000 new positions and signals a sharp recovery following a period of persistent economic contraction.

The sudden expansion suggests a level of labor market resilience that has partially insulated the country from the effects of ongoing U.S. trade tensions. While Canada has technically entered a recession marked by two consecutive quarters of negative growth, the strength in hiring has prevented a more severe downturn.

Construction served as the primary engine for this growth, contributing 26,800 new roles. Substantial gains also appeared in transportation, warehousing, and the information and culture sectors. While full-time employment saw a welcome uptick, the retail and wholesale trade industries continued to shed staff. Despite the broader hiring success, wage growth for permanent employees showed signs of cooling compared to the pace recorded in April.