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According to the latest Labour Force Survey, Canada's economy added 88,000 jobs in May 2026, and the unemployment rate fell 0.3 percentage points to 6.6 percent. It's the first meaningful employment gain since November 2025, and a signal that the labour market may be stabilizing after a difficult start to the year.
The employment rate rose 0.2 percentage points to 60.7 percent, also the first increase since November 2025. Gains were spread across several industries and concentrated in full-time work.
Key Takeaways
Here’s what the May 2026 labour market data from Statistics Canada shows:
Unemployment rate: 6.6%, down from 6.9% in April 2026
Employment: Up 88,000 (+0.4%) in May, and up 147,000 (+0.7%) on a year-over-year basis
Wages: Average hourly wages up 3.0% year-over-year to $37.24
Industries seeing gains: Construction, information, culture and recreation, transportation and warehousing, and accommodation and food services
Industries seeing losses: Wholesale and retail trade
Top provincial gains in employment: Ontario, British Columbia, Alberta, and Prince Edward Island
Regional Insights from the May 2026 Labour Force Survey
Ontario led provincial gains, adding 42,000 jobs (+0.5 percent) in May. Combined with April’s gains, the province has added 84,000 jobs over the past two months. The unemployment rate in Ontario fell 0.5 percentage points to 7.0 percent. This is the lowest level since September 2024.
British Columbia added 25,000 jobs (+0.9 percent) in May. This followed a combined loss of 39,000 jobs in February and March. The unemployment rate in the province held steady at 6.8percent.
Alberta added 14,000 jobs (+0.5 percent) in May. On a year-over-year basis, Alberta’s employment grew by 104,000 (+4.1 percent), more than any other province. The unemployment rate fell 0.4 percentage points to 6.6 percent.
Quebec gained 13,000 jobs (+0.3 percent) in May, after a net decline of 91,000 from January to April. The unemployment rate in Quebec fell 0.6 percentage points to 5.6 percent, with fewer people looking for jobs.
Saskatchewan was the only province to see a meaningful decline in employment, losing 6,100 jobs (-1.0 percent) in May. The unemployment rate rose 0.6 percentage points to 6.2 percent.
Provincial Unemployment Rates Across Canada in May 2026
Here are the provincial unemployment rates in Canada, based on StatsCan data from May 2026:
Alberta: 6.6 percent
British Columbia: 6.8 percent
Manitoba: 5.5 percent
New Brunswick: 7.2 percent
Newfoundland and Labrador: 9.6 percent
Nova Scotia: 7.1 percent
Ontario: 7.0 percent
Prince Edward Island: 6.7 percent
Quebec: 5.6 percent
Saskatchewan: 6.2 percent
Changes in Provincial Unemployment from April to May 2026
Employment Changes by Demographic Group
Youth unemployment (ages 15 to 24) fell 0.9 percentage points to 13.4 percent in May, the first decline since January. In May, the youth unemployment rate was 1.2 percentage points below the September 2025 high of 14.6 percent. This is still well above the pre-pandemic average rate for youth unemployment (10.8 percent).
Among core-aged workers (25 to 54 years old), the unemployment rate fell for both women (down 0.4 percentage points to 5.5 percent) and men (down 0.4 percentage points to 5.7 percent) in May.
For people 55 and older, both employment and the unemployment rate (5 percent) held almost steady.
CMA Insights
The unemployment rate in Toronto fell 1.1 percentage points to 6.8 percent in May. Not only is this a sharp drop from its May and July 2025 peak of 9 percent, but it is also the lowest unemployment level the city has seen since November 2023.
Montreal’s unemployment rate also fell, dropping 1.2 percentage points in May, after increasing in April. The rate now sits at 6.5 percent.
In Vancouver, the unemployment rate decreased 0.6 percentage points to 6.4 percent.
Remote Work Continues to Disappear
Just 11.4 percent of employed Canadians worked exclusively from home in May 2026, down from 12.4 percent a year earlier and nearly half the 18.7 percent recorded in May 2022. The shift back to in-person work has been gradual but consistent since the pandemic.
About 1 in 10 workers (9.8 percent) had a hybrid arrangement in May, a share that has held roughly steady since 2023.
In contrast, the percentage of people working exclusively outside their home was 78.8 percent in May 2026. It was up year-on-year from 77.6 percent in May 2025.
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Stephanie is a content creator who writes on legal and personal finance topics, specializing in immigration and legal topics. She earned a Bachelor of Laws and a Diploma in Financial Planning in Australia. Stephanie is now a permanent resident of Canada and a full-time writer at Moving2Canada.
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Ford, Stephanie. "Canada’s Unemployment Rate Fell to 6.6% in May 2026."Moving2Canada.Last modified June 5, 2026.https://moving2canada.com/work/finding-jobs/labour-market-report/.
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