FX.co ★ Canada Unemployment Rate Unexpectedly Drops

Canada’s unemployment rate edged down to 6.5% in June 2026 from 6.6% in May, coming in below market expectations for no change and matching the lowest level since July 2024. Net employment increased by 18,000 to 21,139,700, driven primarily by gains in part-time positions. Over the same period, the number of unemployed declined by 13,200 to 1,469,200. This was consistent with a job-finding rate of 24.3%—the share of unemployed individuals in May who had secured work by June. These dynamics left the labor force participation rate unchanged at 65.0%, a level that has held relatively steady since the beginning of the year despite energy supply disruptions linked to the war in Iran and ongoing tariff exchanges with the United States.