Canada saw a positive job growth in July, adding 75,000 jobs, marking a 0.4% increase and bringing the unemployment rate down to 6.4%, its lowest level in two years. The latest labour force survey by Statistics Canada revealed that the bulk of these job gains were in both full-time and part-time positions, notably in the wholesale and retail trade sector, which alone saw an addition of 21,000 new jobs.
The employment increase was particularly significant for individuals aged 25 to 54, with a notable rise in job opportunities for women in this age bracket. In contrast, the unemployment rate for men aged 25 to 54 remained steady at 5.8%, while it decreased to 5.2% for women in the same group.
Provincially, Ontario led the way with the most job additions, recording 52,000 new positions in July, mainly in the professional, scientific, and technical services industry. British Columbia also experienced a notable uptick with 18,000 new jobs. Manitoba and Nova Scotia both saw a 0.8% increase in employment, adding 5,900 and 4,600 jobs, respectively.
Statistics Canada reported a total of 181,000 jobs added since April and 196,000 compared to the previous year, indicating a positive trend in employment growth. This momentum follows encouraging job reports from May and June.
Economists lauded the job report exceeding expectations, attributing the robust hiring in July to the significant job surge. The student summer job market was particularly strong, with youth unemployment at its lowest level since early 2024. However, disparities were noted among racialized youth, with varying unemployment rates for different ethnic groups.
While the overall unemployment rate of 6.4% is at a two-year low, economists highlighted that it remains slightly higher than full employment levels. Despite positive employment trends, the average hourly wage increase has slowed to 2.8% year over year, the slowest in four years and aligned with pre-pandemic norms.
Looking ahead, there are concerns about potential trade disruptions, with looming tariffs threatening to impact the recent job gains. Despite challenges, businesses are adapting to trade uncertainties, with efforts to mitigate potential trade turmoil on the horizon. Discussions on trade agreements, including the Canada-United States-Mexico Agreement, are set to resume in the coming months.
