Canada's unemployment rate rose to 7% in May, marking its highest level in over eight years, excluding the pandemic. This increase comes as the economy added 8,800 jobs during the month, according to Statistics Canada. The jobless rate has climbed by 0.4 percentage points since February, reflecting ongoing uncertainty in the job market, particularly due to U.S. trade policies that have affected hiring practices.

Despite the uptick in unemployment, the job market displayed some resilience. Full-time employment saw an increase of 58,000 positions, which helped to balance out a decline in part-time work. However, the overall employment growth has been virtually stagnant since January, following a period of strong job gains at the end of the previous year.

The wholesale and retail trade sectors were significant contributors to the job gains in May. However, these gains were countered by losses in public administration and a notable decline in manufacturing, which lost approximately 12,000 jobs last month. This trend indicates a mixed picture for the Canadian economy as it navigates through various challenges.

Statistics Canada noted that the current unemployment rate is the highest recorded since 2016, outside of the pandemic years. The data suggests that while some sectors are experiencing growth, others are struggling, leading to a complex employment landscape in Canada.