Canada Adds 75,000 Jobs in July, Unemployment Falls to 6.4%
The economy created five times the jobs economists expected and the jobless rate hit a two-year low — though wage growth stayed muted at 2.8%.
Canada's labour market delivered a strong July. The economy added 75,000 jobs — about five times the 15,000 economists had forecast — and the unemployment rate slipped to 6.4% from 6.5% in June, its lowest level in two years, Statistics Canada reported Friday. The gains were split between full- and part-time work.
Where the jobs came from
Hiring was led by wholesale and retail trade (+21,000), finance, insurance and real estate (+18,000), and professional, scientific and technical services (+17,000). Public administration (-15,000) and agriculture (-9,600) shed positions. Youth unemployment remained elevated at 12.6%.
Wages stayed cool
Average hourly wages rose 2.8% from a year earlier — a relatively soft pace suggesting pay isn't adding much fresh inflation pressure even as hiring accelerates. A firmer job market paired with contained wage growth is exactly the kind of mixed signal the Bank of Canada weighs when deciding whether to keep cutting interest rates.
Why it matters
A stronger labour market supports household incomes and spending, but it can also reduce the Bank of Canada's urgency to lower rates further. For anyone facing a mortgage renewal or carrying a variable-rate loan, the path of rates from here is what matters most — and a solid jobs print keeps that path uncertain.
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General news and information, not individualized financial advice. Figures reflect the publication date.