Canadian Labour Market Stabilizes Amid Slowing Population Growth

The Canadian labour market has shown signs of steadying in the second quarter, according to a recent report. Slowing population growth is being cited as one reason for this improvement, with Brendon Bernard from Indeed Canada saying that the working-age employment rate has reached its highest level since mid-2024.

However, despite this increase in employment rates, slow job growth is expected to continue throughout the rest of the year. This is due in part to a decline in newcomers entering the workforce and an increase in workers retiring.

The report also found that many job-seekers are facing prolonged unemployment spells, but Bernard notes that firmer conditions in the second quarter demonstrate the labour market's resilience despite an otherwise soft economy.