The jobless rate fell 0.1 percentage points to 6.9% in June, the first decrease since January, Statistics Canada reported Friday.

Prior to this decline, the unemployment rate had increased for three consecutive months ending in May 2025, when at 7% it reached its highest level since 2016 (excluding the COVID pandemic).

The gain of 83,000 jobs last month surpassed economists’ expectations at a time when the Canadian economy is being pushed lower by U.S. tariffs.

Employment in wholesale and retail trade increased by 34,000 in June, the second consecutive monthly gain, with the increase concentrated in retail trade. On a year-over-year basis, employment in wholesale and retail trade was up by 2.9%.

Last month employment also rose in health care and social assistance, the first notable change since December 2024. Compared with 12 months earlier, employment in the sector grew by 2.8% in June.

Agriculture saw a 2.6% decline in jobs and was the only industry with a notable employment drop. On a year-over-year basis, employment in agriculture was little changed.

In June, the unemployment rate among core-aged women fell 0.3 percentage points to 5.4%. Among core-aged men, it was little changed at 6.1%, as the number of job searchers held steady despite the employment gains.

The youth unemployment rate held steady at 14.2% in June and was up 0.7 percentage points on a year-over-year basis. It remained significantly above its pre-pandemic average of 10.8% recorded from 2017 to 2019.

The slight decline in the jobless rate will give the Bank of Canada more maneuvering room as it approaches its next interest rate setting on July 30.