Canada’s Job Market Unexpectedly Shrinks in May, Unemployment Rate Rises to 5.2%

Canada’s economy unexpectedly lost 17,300 jobs in May, following a gain of 41,400 in April, according to data released by Statistics Canada on Friday. The net change in employment missed the market expectation of a gain of 23,200 jobs for May.

As a result, Canada’s unemployment rate rose to 5.2% in May, slightly higher than the 5.0% rate in April. Analysts had expected the jobless rate to rise only to 5.1%.

When calculated using the U.S. Labor Department methodology, Canada’s unemployment rate in May was up at 4.2%.

Statistics Canada’s press release also noted that the participation rate declined slightly to 65.5% from 65.6%, and the annual wage inflation rate stood at 5.1%, slightly lower than April’s 5.2%.

Fewer people were employed in business, building, and other support services (-31,000; -4.4%), as well as in professional, scientific, and technical services (-13,000; -0.7%). However, employment increased in manufacturing (+13,000; +0.7%), “other services” (+11,000; +1.5%), and utilities (+4,200; +2.7%).