- Canada added 75,000 jobs in July, up 0.4 per cent, as the unemployment rate fell to 6.4 per cent, its lowest level in two years.
- Wage growth slowed to 2.8% in July from 3.3% in June, marking the slowest increase in four years.
- Ontario led job gains with 52,000 new jobs, driving its jobless rate to a two-year low of 6.8%.
- Statistics Canada reported the country is up 181,000 jobs since April and 196,000 from a year ago.
- May and June saw employment increases of 18k and 88k, respectively, contributing to a positive year-to-date employment growth of 68k.
- Full-time positions contributed significantly to the employment growth, with 82k full-time jobs added year-to-date.
Canada's labour market showed significant improvement in July, with 75,000 jobs added, building on previous months' gains of 106,000 in May and June. The unemployment rate fell to 6.4%, its lowest in two years, down half a percent from a year ago.
Most job gains were in full- and part-time work, particularly in wholesale and retail trade, which added 21,000 jobs. Employment rose for individuals aged 25 to 54, especially women in that age group. Ontario led job creation with 52,000 new positions, primarily in professional services.
Despite these positive trends, wage growth has slowed to 2.8%, the slowest in four years, raising concerns about the overall strength of the labour market. CIBC senior economist Andrew Grantham noted that while the 6.4% unemployment rate is encouraging, it remains half a point higher than full employment levels. Racialized youth continue to face higher unemployment rates, with 22.6% for Black youth and 15.4% for Chinese youth, compared to 11.6% for non-racialized youth.
Laura Ulrich from Indeed remarked, "Three straight months moving in the right direction is exactly how turning points begin." Overall, the job market is improving, but challenges remain, particularly in wage growth and disparities among youth demographics.
“Ontario accounted for two-thirds of the national gain with 52,000 new jobs, while youth unemployment remained elevated at 12.6%. However, wage growth slowed to 2.8% year-over-year, the slowest in four years, and U.S. tariff threats of 50% on Canadian imports loom for Aug. 19.”
