Canada's Job Market Steadies in July: RBC Forecasts Modest Growth

Royal Bank of Canada's research arm, RBC Economics, has issued a forecast for Canada's July jobs report. According to RBC, the country will see around 5,000 jobs added and an unemployment rate holding steady at 6.5%. This would mark the first significant check-in on Canada's job market this quarter.

RBC expects conditions in the labor market to remain steady rather than accelerating. The bank points to job-postings data that has been largely unchanged heading into July, indicating a stabilization of employers' appetite to hire. However, despite the stability, RBC also notes that available workers relative to open roles remains elevated.

Wage growth is expected to slow down as a result of this 'slack' in the labor market. This, in turn, would support the idea of modest and steady economic growth rather than an overheating labor market.