Canada’s labour market posted modest job growth in May, adding nearly 27,000 new positions, according to the latest national employment data. However, the unemployment rate still climbed to 6.2 per cent as population growth continued to outpace hiring across the country. Much of the employment increase came from part-time work, while full-time positions saw a noticeable decline during the month.

The report also showed stronger wage growth, with average hourly earnings rising by just over five per cent compared to last year. Economists say the combination of rising wages and higher unemployment could complicate the Bank of Canada’s next interest rate decision. While some analysts still expect a possible rate cut in July, upcoming economic reports will likely play a major role in determining the central bank’s next move.

At the same time, concerns remain about the growing number of Canadians unable to secure full-time employment. Analysts noted that more workers are accepting part-time jobs due to weaker business conditions, highlighting ongoing pressure in parts of the economy despite steady overall hiring activity.