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The jobless rate fell to 12.3 percent in June as businesses reopened after the COVID-19 shutdown, according to Statistics Canada Friday.
The country's unemployment rate hit a record 13.7 percent in May although 290,000 new jobs added in the month.
There were still 1.8 million fewer jobs in the country in June than in February, or before the COVID-19 outbreak.
Statistics Canada said the jobless rate would have been 16.3 percent in June had it included in the unemployment counts those who wanted to work, but did not look for a job.
On Wednesday, the Canadian government forecast the unemployment rate will be 9.8 percent for 2020.