Canada saw a rise in employment by 75,000 jobs in July, marking a 0.4% increase, while the unemployment rate dropped to 6.4%, the lowest in two years. Statistics Canada’s recent labor force survey revealed that the majority of these job gains were divided between full-time and part-time positions, with the wholesale and retail trade sectors contributing 21,000 new jobs.
Employment surged for individuals aged 25 to 54, particularly for women in that age bracket. The unemployment rate remained stable at 5.8% for men aged 25 to 54 but decreased to 5.2% for women in the same group. Ontario led the provinces in job creation, adding 52,000 jobs in July, primarily in the professional, scientific, and technical services industry. British Columbia also experienced a significant increase with 18,000 new jobs.
Manitoba and Nova Scotia both saw employment rate increases of 0.8%, adding 5,900 and 4,600 jobs, respectively. Overall, Canada has gained 181,000 jobs since April and 196,000 compared to the previous year. This positive trend in July follows favorable job reports in May and June.
CIBC’s senior economist Andrew Grantham noted that the job numbers exceeded expectations, driven by robust hiring in July. The summer job market for students showed strength, with youth unemployment rates at their lowest since early 2024. However, disparities were observed among racialized youth, with higher unemployment rates for Black, Chinese, and South Asian youth compared to non-racialized and non-Indigenous youth.
While Canada’s overall unemployment rate of 6.4% is at a two-year low, analysts highlight that the labor force is still not at full employment levels. Despite the positive employment trends, the average hourly wage growth has slowed to 2.8% year over year, the slowest in four years. Economists caution that looming tariffs and trade-related uncertainties could impact the gains made in the labor market.