Canada’s labour market is showing signs of stress this year, with more people turning to Employment Insurance (EI) benefits than at any point since the pandemic recovery.

According to new figures from Statistics Canada, the number of Canadians receiving EI benefits jumped to 541,000 in June 2025 — an increase of 18,000 from the previous month and 12.8% higher than June 2024. That’s a big leap in a relatively short time, suggesting that finding and holding onto stable work is becoming harder for many households.

The increases were concentrated in Quebec and Ontario, which together drove the bulk of the national rise, followed by Alberta, Newfoundland and Labrador, and Saskatchewan. In just the first half of 2025, Quebec saw EI recipients climb nearly 20%, while Ontario recorded a 12.5% jump.

When broken down by job type, the data shows that those last employed in sales and service roles saw the biggest spike, with nearly 5,000 more people on EI in June alone — the fifth straight monthly increase for that category. Manufacturing and utilities workers weren’t far behind, with more than 4,000 new EI recipients, an 11% jump that was especially pronounced in Ontario.

These shifts are playing out against a backdrop of global uncertainty. The ongoing trade tensions with the U.S. and China, particularly tariff policies introduced by U.S. President Donald Trump, have weighed heavily on Canadian businesses. Some employers are absorbing higher costs to keep prices steady, but many have resorted to cutting staff.

At the same time, Statistics Canada’s most recent labour market snapshot showed the country shed 41,000 jobs in July, while the national unemployment rate held steady at 6.9%. That combination — fewer jobs but no real improvement in unemployment — points to a bumpy road ahead.

For small business owners, the pressure is mounting. A recent survey from the Canadian Federation of Independent Business warned that many are at risk of shutting down in the months to come, squeezed by higher costs and slowing consumer demand.

While manufacturing employment has shown signs of bouncing back in late summer, the growing number of Canadians relying on EI underscores the uncertainty many workers are facing as 2025 moves into its final stretch.