07:18 AM EDT, 06/06/2025 (MT Newswires) -- Canada will release the Labour Force Survey (LFS) for May at 8:30 a.m. ET in Friday, noted Bank of Montreal (BMO).

The bank said that uncertainty around the trade relationship with the United States likely prompted hiring to dry up in May. The reversal of the prior month's election-related hiring -- public administration surged 37,100 -- will also weigh heavily.

BMO's call for a 40,000 drop in employment suggests just a mild decline in underlying hiring over the past two months. Despite the steep anticipated decline in jobs, the bank is looking for a similar pullback in the labor force, keeping the jobless rate steady at 6.9%. Hours worked likely also softened in the month, consistent with the bank's call for a contraction in Q2 gross domestic product.

Finally, momentum in wages is expected to continue slowing.

The US dollar (USD) is firmer (BBDXY +0.10%) with the Canadian dollar (CAD or loonie) is faintly softer (CAD per USD -0.02%), added BMO.