Key facts
- Canada's economy added 75,100 jobs in July, surpassing analyst forecasts.
- The unemployment rate dropped to 6.4% in July, the lowest since July 2024.
- Both full-time and part-time employment saw significant gains.
- Job growth was strongest in the private sector, particularly in trade, finance, and professional services.
- Average hourly wages increased by 3.0% year-on-year, a slowdown from the previous month.
Canada's economy demonstrated robust job growth in July, adding 75,100 positions and pushing the unemployment rate down to 6.4%, a two-year low. This figure significantly exceeded the 16,500 jobs analysts had predicted. The gains were broad-based, with strong contributions from both full-time and part-time employment sectors, particularly in wholesale and retail trade, finance, insurance, and professional services. Public sector employment saw a decline of 14,500 jobs as part of government spending reduction efforts. Average hourly wages for permanent employees rose 3.0% year-on-year, a moderation from the 3.7% increase seen in June and the lowest since February 2022. This strong employment report suggests the Canadian economy is navigating challenges, including U.S. tariffs and international tensions, more effectively than anticipated.