Statistics Canada says the economy added a surprise 88,000 jobs in May, partially offsetting employment declines since the start of the year.
The agency says the unemployment rate fell to 6.6 per cent, down from 6.9 per cent in April.
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StatCan says employment gains were widespread across industries and concentrated in full-time work.
Construction led the way with a gain of 27,000 jobs last month, while the wholesale and retail trade sector lost 35,000 positions.
Economists had expected a gain of 10,000 jobs heading into the May report.
StatCan also says young workers aged 15 to 24 saw a big lift in full-time jobs in May as youth see a better start to the summer jobs season this year compared with the tough labour market of 2025.
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