Canada's Labor Market Starts The Summer Well, Says Desjardins

09:01 AM EDT, 07/11/2025 (MT Newswires) -- Canada's labor market experienced a "hot" start to the summer, said Desjardins.

The economy created 83,000 jobs in June, pushing the unemployment rate down a tick to 6.9%, noted the bank, citing Friday's Labour Force Survey (LFS). That came in stark contrast to forecasts looking for a rise in the jobless rate.

In addition, the unemployment rate for prime-age individuals also declined from 6.0% to 5.8%.

Job creation surged in services sectors. Despite the demise of a major retailer in Canada during the month, employment rose markedly in that sector, pointed out Desjardins. Healthcare and social services also posted a strong gain.

On the goods side, the factory sector showed some signs of life after months of destruction tied to the trade war with the United States. The heady increase in employment led to a 0.5% rise in hours worked in June, although wage growth unexpectedly cooled down, added the bank.

The solid employment report has pushed the bank's tracking for Q2 gross domestic product growth up slightly, although it remains in a range of -0.5-0.0%.

With the unemployment rate still elevated, Friday's labor market data won't be the swing factor for the upcoming Bank of Canada rate decision, accoridng to Desjardins. Next week's consumer price index release will play a much more important role in determining whether central bankers resume monetary easing later in July.

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