OTTAWA — Canada added 75,000 jobs in July, far exceeding expectations, while the unemployment rate fell to 6.4%, its lowest level in two years, signaling continued improvement in the labor market after a weak start to 2026.
Statistics Canada said on Friday that employment rose 0.4% in July, with gains split between full-time and part-time work. The unemployment rate fell 0.1 percentage point from June, marking its third consecutive monthly decline and bringing it to its lowest level since July 2024.
The result was substantially stronger than economists had anticipated. A Reuters poll had forecast a gain of 16,500 jobs and an unemployment rate of 6.5%.
Full-time employment increased by 38,600 positions in July, while part-time employment rose by 36,600. Private-sector employment increased by 58,000, while self-employment rose by 44,000. Public-sector employment declined by 27,000.
Employment gains were concentrated in several industries. Wholesale and retail trade added 21,000 jobs, while finance, insurance, real estate, rental and leasing gained 18,000. Professional, scientific and technical services increased by 17,000 jobs, and construction employment rose by 16,000. Public administration and agriculture recorded declines.
Ontario accounted for most of the provincial increase, adding 52,000 jobs, while British Columbia gained 18,000. Manitoba and Nova Scotia also recorded increases. Ontario's unemployment rate fell to 6.8%, while British Columbia's declined to 6.2%.
The labor-market improvement was also evident among core-aged workers. Employment among people aged 25 to 54 rose by 51,000, including a 33,000 increase among women. The unemployment rate for core-aged women fell to 5.2%, while the rate for core-aged men was little changed at 5.8%.
Average hourly wages for permanent employees rose 3.0% from a year earlier in July, according to Statistics Canada, down from 3.7% growth in June. The moderation in wage growth could be relevant to the Bank of Canada's assessment of inflationary pressures.
The Bank of Canada has held its policy rate at 2.25% since October. The central bank has said the economy was showing signs of coping better with trade uncertainty and U.S. tariffs, while preliminary data indicated second-quarter economic growth may have been stronger than previously expected.
Statistics Canada's July employment figures are based on labor-market conditions during the July 12-18 reference week.
