Employment Insurance Uptick Signals Rising Job Search Struggles in Canada

The number of Canadians relying on employment insurance (EI) continued to climb in June, with regular EI beneficiaries increasing by 3.4% to reach 541,000, Statistics Canada reported on Wednesday. Over the first half of 2025, EI recipients rose by 11%.

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Compared to June 2024, the number of EI recipients grew by 62,000—an increase of 12.8%. According to the Labour Force Survey, Canada’s unemployment rate rose by 0.5 percentage points year-over-year, hitting 6.9% in June. That rate held steady in July, despite a net loss of 40,800 jobs.

The most significant monthly rise in June came from those previously employed in sales and service occupations, which saw a 5.4% increase (4,800 people). This marked the fifth consecutive month of growth in that category. Manufacturing and utilities followed with an 11% jump (4,300 recipients), primarily in Ontario.

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“While permanent layoffs aren’t much higher than a year ago, job seekers are taking longer to find employment, with losses more concentrated in sectors exposed to cross-border trade,” noted Rachel Battaglia, an economist at the Royal Bank of Canada. She pointed out that while tariff-related uncertainty has weighed on hiring plans across the economy, actual job losses remain concentrated in trade-sensitive sectors like manufacturing, primary resources, and transportation and warehousing.

EI usage was up across all major occupational groups year-over-year. The largest increases came from those last employed in business, finance, and administration roles (25%), followed by sales and service (17.3%) and trades, transport, and equipment operators (8.2%).

By age, EI claims rose 3.5% in June for men aged 25 to 54, while women aged 55 and older saw a sharp 12.2% increase. Compared to June 2024, all major demographic groups recorded higher EI usage, with the most significant jumps among women 55 and older (21.7%), women aged 25 to 54 (14.5%), and men aged 25 to 54 (13%).