Canada's unemployment rate rose to 6.2% in May

As the labor market continues to show signs of weakness, Canada's unemployment rate rose to 6.2 percent in May. Statistics Canada's latest labor force survey showed that 27,000 jobs were created last month. This increase is so small that it cannot prevent the increase in the unemployment rate. It is stated in this report that among those who were unemployed in April, less than a quarter of them found work in the following month (May). This is lower than the pre-pandemic average of 31.5 percent for the same months in 2017, 2018 and 2019.

The report continues: "The small number of those who have found a job indicates that people are facing more difficulties in finding work in the current labor market." They work part-time. Meanwhile, wage growth was still high in May. The average hourly wage rose 5.1 percent from last year to $34.94.

According to this report, employment in health care and social assistance, finance, insurance, real estate, rental and leasing, trade, construction and other support services, as well as accommodation and food services increased, but employment in the construction sector And construction, transportation and warehousing and water and electricity services had decreased.

The information came after the central bank cut interest rates for the first time in four years. The central bank reduced its main interest rate by a quarter of a percentage point to 4.75 percent.

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