Canada experienced a notable increase in employment in July, adding 75,000 jobs, marking a 0.4% rise, and resulting in a decline in the unemployment rate to 6.4%, the lowest in two years. Statistics Canada’s recent labor force survey indicated that the majority of job gains were distributed between full-time and part-time positions, with the wholesale and retail trade sector contributing 21,000 new jobs.
Employment surged among individuals aged 25 to 54, particularly among women in that age bracket. While the unemployment rate remained stable at 5.8% for men aged 25 to 54, it dropped to 5.2% for women in the same group. Ontario led the provinces with the highest job growth in July, adding 52,000 jobs, mainly in the professional, scientific, and technical services sector. British Columbia also saw a significant increase with 18,000 new jobs.
Manitoba and Nova Scotia experienced employment rate increases of 0.8%, adding 5,900 and 4,600 new jobs, respectively. Overall, Canada has added 181,000 jobs since April and 196,000 compared to the previous year. The positive trend in employment continued from May and June, with Laura Ulrich, the director of economic research at Indeed, expressing optimism about the country’s economic momentum.
The surge in job numbers exceeded expectations, with CIBC senior economist Andrew Grantham attributing the brisk hiring in July to the significant job growth. The summer job market for students was particularly strong, with the unemployment rate for young people aged 15 to 24 dropping to its lowest level since early 2024.
However, disparities were observed among racialized youth, with varying unemployment rates including 22.6% for Black youth, 15.4% for Chinese youth, and 13.9% for South Asian youth, compared to the 11.6% rate for non-racialized and non-Indigenous youth. While the overall unemployment rate of 6.4% is the lowest in two years, economists noted that it is still slightly higher than the level expected for full employment.
Despite the positive job market trends, BMO chief economist Douglas Porter highlighted that the average hourly wage increase has slowed down to 2.8% year over year, indicating the slowest growth in four years. The article also discussed looming trade tariffs that could impact Canada’s economic gains, with negotiations and uncertainties surrounding trade agreements with the United States.