Canadian Labour Market Stabilizes Amid Ongoing Challenges

The Canadian labour market has stabilized after a weak start to the year, with employment showing signs of improvement in Q2 2026. According to the Indeed Hiring Lab, job postings have edged lower since January but remain relatively steady overall, with most occupations following suit except for healthcare and education, where postings have declined over the past year.

Wage growth has cooled down, with year-over-year hourly earnings growth averaging around 2.9% in June 2026, according to the Labour Force Survey (LFS). This trend is in line with the Indeed posted wage tracker, which showed growth of advertised wages and salaries gradually cooling as employer demand receded.

Despite ongoing challenges, such as prolonged unemployment spells, the labour market's resilience amid an otherwise soft economy has been highlighted by firmer conditions in Q2. The 6.5% unemployment rate in June 2026 matched its lowest monthly rate since Q3 2024.