Canada Adds 75,000 Jobs in July, Labour Market Recovery Continues

Canada's labour market continued its recovery in July, adding 75,000 jobs and bringing the total gain since April to 181,000. The unemployment rate dropped by half a percentage point from last year, with more people finding work than at this time in 2019.

The country is now up 196,000 jobs from the same period last year, according to Statistics Canada. CIBC senior economist Andrew Grantham noted that the job growth was stronger than anticipated and consistent with GDP figures showing the Canadian economy's recovery.

However, RBC assistant chief economist Nathan Janzen cautioned that the labour market is not yet strong, with an unemployment rate still higher than normal and wage growth slowing in July. Average hourly wages rose 2.8% year-over-year, but decelerated from 3.3% growth in June.

The wholesale and retail trade sectors drove much of July's job gains, adding 21,000 positions, though they remain down 50,000 jobs from last year. Finance, insurance, real estate, rental, and leasing added 18,000 jobs, while professional, scientific, and technical services gained 17,000.

Public administration shed 15,000 jobs in July, and agriculture lost 9,600 positions. Desjardins managing director Royce Mendes warned that the labour market has a long road to recovery, with wage growth decelerating further around the rate of inflation.