Canada saw a rise of 75,000 new jobs in July, marking a 0.4% increase and bringing the unemployment rate down to 6.4%, the lowest in two years. The latest labor force survey by Statistics Canada revealed that the job gains were mostly in full-time and part-time positions, with the wholesale and retail trade sector contributing 21,000 new jobs.
Employment growth was notably strong for individuals aged 25 to 54, particularly women in that age range. In this demographic, the unemployment rate remained steady at 5.8% for men but decreased to 5.2% for women. Ontario led the way in job creation among provinces, adding 52,000 jobs, mainly in the professional, scientific, and technical services sector. British Columbia also experienced a substantial increase with 18,000 new jobs.
Manitoba and Nova Scotia both showed positive employment trends, with Manitoba’s job rate climbing by 0.8% with 5,900 new positions and Nova Scotia seeing a similar increase, adding 4,600 jobs. Since April, Canada has gained 181,000 jobs, and compared to last year, the country has added 196,000 jobs.
This positive momentum in job growth follows a string of favorable employment reports in May and June. Analysts like Laura Ulrich, director of economic research at Indeed, believe that these trends indicate a turning point towards stability and sustained growth in Canada’s job market.
The substantial increase in job numbers in July surpassed expectations, with CIBC senior economist Andrew Grantham attributing the success to robust hiring activities during the month. Grantham also highlighted the improved job market for young people, with the summer job market for students being the strongest in two years and the unemployment rate for individuals aged 15 to 24 at its lowest since early 2024.
Despite the overall unemployment rate hitting a two-year low at 6.4%, economists caution that it is still slightly higher than what is considered full employment. BMO chief economist Douglas Porter noted that while positive employment trends are evident, the average hourly wage growth has slowed to 2.8% year over year, the slowest rate in four years.
Looking ahead, economists are optimistic about Canada’s economic outlook, with the job market showing signs of stabilization. However, looming trade tensions, such as U.S. President Donald Trump’s threats of tariffs on Canadian imports, could pose challenges to future job gains. Canada is actively seeking resolutions to trade disputes to ensure continued economic growth and stability.
Concerns over potential trade disruptions aside, the recent job report indicates a positive trajectory for Canada’s labor market, suggesting a promising outlook for the country’s economic landscape in the coming months.