Canada Jobless Rate Tumbles to Two-Year Low Amid Tariff Uncertainty

Canada's economy added a robust 75,000 jobs in July, pushing the unemployment rate down to 6.4 percent, its lowest level in two years, as it adapts to US tariffs.

The jobs numbers far exceeded analyst expectations of roughly 20,000 new jobs, reinforcing the Bank of Canada's view that businesses are better responding to US President Donald Trump's trade restrictions.

Hiring was split between full-time and part-time work and spread across various industries, including finance and construction. This contrasted with the United States, which reported a July job loss of 23,000 jobs.

TD Bank predicted that unemployment would continue to nudge downward through the rest of the year, saying 'the labour market is showing clear signs of recovery.'