Wage growth accelerates to 3.7% for permanent workers as Canadian labour market stabilizes in June
Wage growth for full-time permanent employees hit 3.7% year-over-year in June, up from 3.2% in May, as Canada adds 18,200 jobs and the unemployment rate holds steady at 6.5%, signalling moderate labour market stability.
Wage growth for full-time permanent employees increased to 3.7% annually in June, up from 3.2% in May. Canada's employment rose by 18,000 in June, above market expectations for 10,000, following an 88,000 gain in May. The jobless rate held steady at 6.5%.
Where job gains are concentrating
Retail and wholesale trade led gains with 16,400 new jobs, while accommodation and food services added 14,700. However, goods-producing sectors shed 43,700 jobs, with manufacturing losing 16,800, reflecting weakness in export-oriented industries amid trade uncertainty.
The broader picture: despite recent job additions, the rebound follows a cumulative net loss of 112,000 jobs during the first four months of 2026. In an environment where the labour force isn't really growing with no population growth, flat jobs means stable, according to labour economists. The wage acceleration suggests employers are competing for talent in service sectors, though manufacturing and goods-production remain under pressure.
For expats and jobseekers: If you're negotiating salary or looking for work, retail, hospitality, and service sectors are hiring and showing wage momentum. Tech, healthcare, and finance roles continue to command premium increases. Manufacturing roles face headwinds due to tariffs and trade uncertainty, so emphasize your flexibility and soft skills. The 3.7% wage growth outpaces core inflation (~2%), meaning your purchasing power is gradually improving—good news for newcomers settling into the Canadian job market.
Sources
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