Canada’s labour market finally posted a meaningful rebound in June 2025, adding 83,100 jobs and nudging the unemployment rate down to 6.9%. For medium to enterprise employers, this signals a cautiously optimistic turn—but the gains are nuanced, and the path ahead still demands agility.
According to the latest Statistics Canada release, this is the first drop in the unemployment rate since January, marking a positive shift after several months of stagnant or declining job numbers. However, with part-time work making up the lion’s share of the growth, and long-term unemployment still high, the recovery has uneven edges that employers can’t afford to ignore.
Let’s take a closer look at what this means for employers in key Canadian industries, and how Agilus recommends responding to these developments.
The Big Picture: Hiring Momentum Returns, but with Caveats
The June job surge lifted overall employment by 0.4%, bringing Canada’s total number of employed individuals to 21.06 million. The national unemployment rate dropped slightly to 6.9%, down from 7.0% in May. While this may appear modest, the improvement breaks a five-month stretch of steady or rising joblessness.
But dig into the numbers and a more complex story emerges:
- Over 84% of new jobs were part-time, which suggests employers are still cautious about long-term commitments and speculate these are seasonal jobs will disappear at the end of August.
- Long-term unemployment remains elevated, with 21.8% of job seekers unemployed for 27 weeks or more.
- Wage growth for full-time employees rose 3.2% year-over-year, with average hourly wages reaching $37.22.
“The numbers suggest a rebound in confidence, but also a workforce in transition,” says Craig Brown, CEO of Agilus Work Solutions. “This isn’t a simple return to normal; it’s a reaction to businesses recalibrating in the midst of trade negotiations and economic uncertainty. Employers who stay flexible, focus on candidate experience, and build skills-based strategies will come out stronger.”
Sectors Seeing Gains: Retail, Healthcare, and Manufacturing Lead
The June gains were concentrated in a few key sectors:
- Wholesale and retail trade: +34,000 jobs
- Healthcare and social assistance: +17,000 jobs
- Manufacturing: +10,000 jobs
These increases suggest renewed consumer and industrial activity—but not without qualification. For example, the majority of retail gains were part-time, reflecting ongoing employer caution and seasonal fluctuations.
Healthcare continues to grow steadily due to demographic shifts and systemic demand, especially in long-term care and community health roles.
Manufacturing, meanwhile, is showing signs of stabilization. The June increase reverses months of job loss, offering a glimmer of hope in one of Canada’s most economically sensitive sectors that is at the heart of the current negotiations with the U.S.
Geographic Bright Spots: Alberta, Quebec, Ontario
Employment growth was especially strong in:
- Alberta: +30,000 jobs
- Quebec: +23,000 jobs
- Ontario: +21,000 jobs
These gains were the largest among the provinces, positioning Alberta and Quebec as two of the top labour markets to watch. Ontario’s increase is notable given its already high workforce participation rate. For employers, this reinforces the need to tailor recruitment and retention strategies to regional labour conditions.
The Labour Pool: Caution and Mismatch Remain
Despite the headline gains, the structure of the growth reveals ongoing mismatch between available workers and employer needs.
Many businesses continue to report difficulty finding candidates with the right mix of technical skills, experience, and availability. Simultaneously, underemployment persists as job seekers hesitate to accept roles that don’t meet their expectations for compensation, flexibility, or advancement.
As reported by Reuters, this mixed market is “far from tight,” but it’s still highly competitive in key sectors.
For employers this means:
1. Labour market mismatch is real—and growing.
2. Candidate expectations have evolved, placing greater value on flexibility, transparency, and growth potential.
Agilus recruiters hear this from candidates every day: job seekers want more than stability—they want purpose, clarity, and speed in the hiring process.
Recommendations for Employers: Advice from Our Account Managers
Based on current data and employer feedback, here’s what Agilus Account Managers are advising right now:
1. Convert Part-Time Caution into Full-Time Potential
Many of June’s new hires were part-time, reflecting employer caution in uncertain conditions. Now is the time to build a conversion strategy that identifies high-performing part-time staff who could move into full-time or contract roles. Consider upcoming enterprise or departmental priorities—and assess how your part-time team members could contribute more meaningfully to long-term projects or capacity planning.
2. Recruit Regionally, Compete Nationally
With strong gains in Alberta, Quebec, and Ontario, talent pools are tightening in urban centres. Widen your search radius. Consider remote, hybrid, or relocation incentives where applicable—especially in IT, engineering, and skilled trades.
3. Tap into the Long-Term Unemployed
Over 1 in 5 unemployed workers have been looking for work for over six months. With targeted onboarding and upskilling support, this overlooked talent pool could meet your long-term hiring goals.
4. Improve Candidate Experience
From job posting to onboarding, candidates expect clarity and speed. Ghosting, delays, or unclear messaging are dealbreakers. Make the process seamless, responsive, and human.
5. Reevaluate Your Total Rewards With wage growth around 3.2%, employers must be competitive—but not just with salary. Flexible work, learning opportunities, and strong internal mobility can give you the edge. Read the Agilus 2024 UnSalary Guide for more information on compensation trends beyond salaries.
What’s Next?
Canada’s June employment gains offer a much-needed signal of resilience. But the growth is layered—driven by part-time roles and concentrated in specific regions and sectors. Employers will need to balance strategic caution with decisive action as they build and retain high-performing teams. This labour market rewards organizations that:
- Plan for agility
- Invest in people and systems
- Deliver exceptional candidate and employee experiences
At Agilus, we help employers navigate change with specialized recruitment services across six key sectors: Engineering, IT, Professional Services, Administrative, Light Industrial, and Contact Centres. Whether you’re hiring for a project, scaling for growth, or responding to economic shifts, we’re ready to help.
“When talent markets shift, the best employers don’t wait; they adapt. And we’re here to help them do that.” Craig Brown, CEO, Agilus Work Solutions
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