Canada saw a rise of 75,000 new jobs in July, marking a 0.4% increase and leading to a drop in the unemployment rate to 6.4%, its lowest point in two years, according to Statistics Canada’s latest labor report. 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 of the new jobs.
The data revealed that employment levels increased notably for individuals aged 25 to 54, with a particular focus on women in this age bracket. While the unemployment rate stayed at 5.8% for men aged 25 to 54, it decreased to 5.2% for women within the same demographic.
Ontario experienced the largest job growth among provinces in July, adding 52,000 jobs, a 0.6% increase, mainly in the professional, scientific, and technical services field. British Columbia also saw a similar rise with 18,000 new jobs. Manitoba’s employment rate climbed by 0.8%, adding 5,900 positions, while Nova Scotia recorded a 0.8% increase, adding 4,600 jobs.
Statistics Canada reported an increase of 181,000 jobs since April and 196,000 compared to the previous year. This positive trend in July follows encouraging job news from the months of May and June.
The boost in job numbers surpassed expectations, with CIBC senior economist Andrew Grantham attributing it to robust hiring in July. The report also highlighted a stronger summer job market for young people aged 15 to 24, with the lowest youth unemployment rate since early 2024. However, disparities were noted within racialized youth groups, with varying unemployment rates.
While the current overall unemployment rate of 6.4% is the lowest in two years, economists cautioned that it remains higher than full employment levels. BMO chief economist Douglas Porter emphasized that although employment trends are positive, average hourly wage increases have slowed to 2.8% year over year, the slowest rate in four years.
Looking ahead, economists anticipate potential challenges due to looming tariffs that could impact the job market. Despite recent positive economic indicators, uncertainties related to trade issues, including U.S. tariffs on Canadian imports, remain a concern. Canada is actively seeking solutions to mitigate potential trade disruptions and is engaged in ongoing discussions regarding trade agreements.
Overall, the recent job report reflects a positive trajectory in Canada’s labor market, with hopes for continued growth and stability in the coming months.
