Canada Jobs Report: Monster Gain in July as Unemployment Rate Hits Two-Year Low
Canada's economy added far more jobs in July than expected, as the country posted a monster jobs gain. Statistics Canada reported that employment jumped by 75,100 positions, with both full-time and part-time sectors showing strong gains.
The unemployment rate dropped to a two-year low of 6.4%, down from 6.5% in June. Analysts had forecast a net gain of just 16,500 positions and estimated the jobless rate would remain at 6.5%. The actual numbers beat those predictions handsomely.
The Bank of Canada has been monitoring the impact of US tariffs and international tensions on the economy. In July, the central bank said there were clear signs that the economy was coping better with these challenges. It predicted annualized second-quarter growth would hit 2.5% after stalling earlier in the year.
July's blowout follows the creation of 87,800 jobs in May. The average hourly wages of permanent employees grew by 3.0% in July, down from 3.7% in June. This was the lowest since a 2.8% year-on-year increase recorded in February 2022.
Gains were focused on the private sector, with strength in wholesale and retail trade, finance and insurance, and professional and scientific services. In contrast, public sector jobs fell by 14,500 amid an official bid to cut government spending.