Unemployment Rate Rises in Canada’s Largest Cities (June 2025)

Unemployment Rate Rises in Most of Canada’s Largest cities (May 2025)

On June 6, 2025, Statistics Canada reported that the national unemployment rate in May edged up to 7.0%, marking the third consecutive monthly increase and the highest level since September 2016. Notably, this rise was driven by higher joblessness in many of Canada’s largest Census Metropolitan Areas (cities). Below, we delve into the data for each of these major urban centres, highlight where unemployment climbed the most, and discuss what this means for local labour markets.

National Unemployment Overview

In May 2025, Canada’s overall unemployment rate rose by 0.1 percentage points to 7.0%. There were approximately 1.6 million unemployed individuals, a 13.8% increase (+191,000) compared with May 2024. Core-aged men (25–54) experienced a jump in unemployment to 6.2% (+0.4 pts), the highest since August 2018. Meanwhile, youth (15–24) and core-aged women (25–54) saw little change in their unemployment rates (14.2% and 5.7%, respectively).

Unemployment Rates by Top Cities (May 2025)

CMA	Rate (May 2025)	Change (pp)
Windsor	10.8%	+2.8
Oshawa	9.1%	+1.6
Toronto	7.7%	+0.1
Montreal	6.0%	–0.1
Vancouver	6.5%	+0.2
Calgary	7.2%	+0.4
Edmonton	7.3%	+0.3
Ottawa–Gatineau	5.4%	+0.2
Winnipeg	5.3%	+0.5
Quebec City	3.8%	+0.1
Hamilton	5.6%	+0.2

Among these 11 CMAs, the largest monthly jumps were in Windsor (+2.8 pp), Winnipeg (+0.5 pp), Calgary (+0.4 pp), and Edmonton (+0.3 pp). Montreal was the only major CMA to see a slight decrease in its unemployment rate (–0.1 pp).

Sectoral and Demographic Drivers

Several factors contributed to the rising joblessness in these CMAs:

Energy and Public Administration Slumps: In Calgary and Edmonton, layoffs in oil and gas services and public administration drove unemployment higher.
Retail & Hospitality Adjustments: Vancouver, Toronto, and Windsor saw slower hiring in accommodation and food services, offsetting gains in retail trade.
Auto Sector Slowdown: Oshawa experienced layoffs in automotive manufacturing, contributing to a 1.6 pp rise.
Youth Unemployment Pressures: Winnipeg’s spike was linked to a 3.2 pp jump among returning post-secondary students (age 15–24), reflecting a challenging summer job market.

What This Means for CMAs and Job Seekers

Prospective Job Seekers: With fewer positions in energy, public administration, hospitality, and manufacturing, focusing on high-demand industries—such as healthcare, technology, and skilled trades—may be essential. Upskilling and targeted networking can improve prospects in competitive markets like Calgary and Windsor.

Employers: Rising unemployment suggests there is more available labour in some sectors. Employers may find it easier to recruit for specialized roles, but should remain vigilant for shifts if the national labour market stabilizes.

Policy Implications: Municipal and provincial governments in affected CMAs may need to bolster job-training programs, especially for youth and displaced workers in resource-dependent communities like Windsor and Oshawa. Regional strategies targeting emerging industries could help rebalance local labour markets.

Conclusion

May 2025 saw unemployment rise in most of Canada’s largest CMAs, reflecting sectoral adjustments and demographic pressures—particularly among youth and manufacturing-dependent centers. While Montreal bucked the trend with a slight improvement, cities like Windsor, Oshawa, Winnipeg, Calgary, and Edmonton face steeper labour-market challenges. Job seekers and policymakers alike should monitor these shifts and focus on growth industries to mitigate the impact of higher unemployment.

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