Business·UpdatedThe increase in jobs was driven by a growth in full-time roles, with the construction, information and culture, and transportation sectors leading the way. May's job additions are the first significant employment gain since November 2025, Statistics Canada said.It's the first significant employment gain since November 2025, says StatCanThomson Reuters · Posted: Jun 05, 2026 8:56 AM EDT | Last Updated: 28 minutes agoListen to this articleEstimated 3 minutesThe audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.Construction workers on the job at 100 Fullarton St., in London, Ont., on Jun. 18, 2025. The Canadian economy added 88,000 jobs in May, driven in part by an increase in the construction industry. (Alessio Donnini/CBC)Canada's economy added 88,000 jobs and the unemployment rate fell ‌back to 6.6 per cent in May, Statistics Canada data showed on Friday, defying widespread expectations and partially offsetting drops in employment so far this year.Canada had lost 112,000 net jobs in the first four months of 2026, but May's big addition helped erase almost 80 per cent of the job losses posted since the year began. It's the first significant employment gain since November, according to Statistics Canada.Analysts polled by Reuters had forecast the unemployment rate to hold at the six-month-high ​level reached in April at 6.9 per cent and had predicted net additions of 10,000 ⁠jobs in May.The additions in May were fully ⁠concentrated ⁠in full-time work, which saw a net ​addition of 154,000 jobs, reversing almost all of the first four months of net losses ​in the category, Statistics Canada said. Part-time employment fell by 66,200.Canada's economy ⁠has weathered an onslaught of U.S. tariffs and trade ‌uncertainty for more than 12 months, hitting some crucial sectors hard and leading to job losses. It has also sucked hiring momentum and investments out from the broader economy."This is an unambiguously strong report," said Benjamin Reitzes, BMO Economics managing director, in an investor note. "Canada continues to hold in."However, he cautioned against too much excitement, as employment is only up 0.7 per cent year over year.The positive figures come after some negative news last Friday, when Canada posted a second quarter in a row of GDP contraction on an annualized basis, which some economists would deem a technical recession. AnalysisWhat Canadians need to know about a 'technical recession'But economists have been divided on whether Canada is actually in one, partly because there have been no widespread job losses and because some sectors have shown healthy growth.Reitzes said today's positive job numbers should somewhat ease concerns.Much of the job creation came from the construction industry, which added a net 26,800 jobs, as well as information, culture and recreation, which saw an additional 19,300 jobs. Transportation and warehousing saw gains of 18,700 jobs, while accommodation and food services grew by 17,000.On the other side of the ledger, the wholesale ​and retail trade sector, which accounts for almost 14 per cent of the total employed workforce, posted a job decline of 35,000 positions in ⁠May.Youth unemployment rate also fell to 13.4 per cent in May, down from 14.3 per cent a month earlier. Statistics Canada pointed out that the unemployment rate for youth is now 1.2 percentage points below its recent high in September 2025.As in the core aged workforce, the job additions for youth were concentrated in full-time roles. Young people have struggled to find work in recent years. The unemployment rate for the 15 to 24 age group has consistently stayed above pre-pandemic averages. The tough job market isn't getting any better for young CanadiansAverage hourly wages of permanent employees, a metric closely tracked by the Bank of Canada to gauge the rise in inflation expectations, grew 3.2 per cent in May — a sharp decline from the 4.8 per cent posted in April.The May jobs report marks the last major economic data release before the Bank of Canada's interest rate decision comes out on Wednesday.With files from CBC News