Actalent Canada Labour Market Report: A Look at Trends in Q2 2026

Employment in Canada declined by 17,700 in April before increasing by 87,800 in May and 18,200 in June. As a result, Canada added a net 88,300 jobs in Q2 2026, following a net loss of 94,600 jobs in Q1.

By industry, job gains were largely concentrated in accommodation and food services (+44,700), healthcare and social assistance (+30,500), and business, building and other support services (+26,100). 

Canada’s labour market showed signs of improvement in Q2 2026, though overall conditions remained subdued. The quarter's job gains were not enough to fully offset Q1 losses, leaving employment down by a net 6,300 jobs in the first half of 2026. By June, employment was up 99,000 jobs compared to a year earlier, driven by growth in full-time employment (+131,200). In manufacturing, year-over-year employment losses moderated, and the unemployment rate declined from Q1 levels, suggesting some stabilization despite ongoing industry headwinds. Despite broader labour market challenges, low unemployment rates for engineering and scientific workers indicate continued competition for many skilled talent segments.

Average hourly earnings for all employees increased 3.6% year-over-year (Q2 2025 to Q2 2026), down from 4.0% growth in Q1. Wages for workers in professional and technical occupations in natural and applied sciences increased 2.4%, lagging the overall average.