Canada’s unemployment rate in May rose to seven per cent, its highest level since 2016, excluding pandemic years 2020 and 2021, and economists say that may force the Bank of Canada to cut rates sooner rather than later.

The number of unemployed people in Canada climbed 13.8 per cent in May from a year ago, according to Statistics Canada data released on Friday. The number of people unemployed in April who were unable to find work in May rose.

“This indicates that people are facing greater difficulties finding work in the current labour market,” the agency said.

The amount of time people were unemployed rose to 21.8 weeks, up from 18.4 weeks the year before.

Otherwise, the economy gained 8,800 jobs in May, topping the forecasted loss of 10,000 positions from analysts surveyed.

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