Canada Jobs Surge Despite Wages Growth Slowing

Canada's July employment report showed a strong gain of 75.1k jobs and a drop in unemployment to 6.4%, its lowest level since July 2024.

The labor market is still experiencing slack, with wages growing at only 3.0% year-over-year, down from 3.7% in the previous report.

This marks the third consecutive month of employment growth, with two of those months seeing strong gains, and coincides with signals of a significant pickup in Q2 GDP.

Bank of Canada officials may view this as evidence that the GDP increase is sustainable, although there are still mixed views on this topic.