Canada saw a notable increase of 75,000 jobs in July, marking a 0.4 percent rise, while the unemployment rate dropped to 6.4 percent, the lowest in two years. Statistics Canada revealed that the job gains were evenly distributed between full-time and part-time positions, with the wholesale and retail trade sector contributing 21,000 new jobs.
Employment surged for individuals aged 25 to 54, particularly for women in that age bracket. In the same group, the unemployment rate remained steady at 5.8 percent for men but decreased to 5.2 percent for women. Ontario led the provinces in job creation with 52,000 new 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 recorded a growth in employment rates by 0.8 percent, adding 5,900 and 4,600 new jobs, respectively. Since April, Canada has added a total of 181,000 jobs and 196,000 compared to the previous year. This positive trend in July follows similar good job reports in May and June.
CIBC senior economist Andrew Grantham noted that the job numbers exceeded expectations due to robust hiring in July. He highlighted the strengthened student summer job market and the lowest unemployment rate for young people aged 15 to 24 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 the overall unemployment rate of 6.4 percent is at its lowest in two years, economists pointed out that it is still slightly higher than full employment levels. BMO chief economist Douglas Porter mentioned that Canada’s labor force has grown modestly over the past year, contributing to the decline in the jobless rate.
Looking ahead, experts warned of potential challenges due to looming tariffs, particularly with U.S. President Donald Trump’s threats of significant tariffs on Canadian imports. Despite uncertainties in trade relations, the latest job numbers indicate that businesses are adapting to the current economic landscape. Canada is actively seeking solutions to mitigate potential trade disruptions and is engaged in discussions to resolve trade issues.
