Canada Aims for Third Straight Gain in July Employment

The Canadian economy is expected to show another positive month in July, according to recent forecasts. The predicted employment increase of 20k is a third consecutive gain, though lower than May's 87.8k correction from preceding weakness. Unemployment is anticipated to remain at June's 6.5%, with the labor force rising by 10k and participation holding steady at 65.0%.

Services are expected to lead the way in July, with a 35k increase, driven by wholesale and retail as well as accommodation and food services. These sectors may have benefited from the World Cup. However, goods production is predicted to decline by 5k, following weakness in June's data.

The labor market appears to be slowly improving, with full-time employment expected to rise by 25k in July, while part-time work declines by 5k. The hourly wage for permanent employees is anticipated to grow at a rate of 3.4% year-over-year, down from June's 3.7%. US tariffs pose a threat to Canada's economic momentum going forward.