Canada's Labour Market Adds 75,000 Jobs in July

Canada's labour market added a significant 75,000 jobs in July, exceeding economists' expectations. This beat the predicted 15,000-job gain from a Reuters poll. The country has now gained 181,000 jobs since April and is up 196,000 from a year ago.

The unemployment rate decreased to 6.4 per cent, its lowest level in two years. Statistics Canada said this was due to more people finding work than at the same time last year. The labour market still has room for improvement, with the unemployment rate being higher than normal and wage growth slowing down.

The wholesale and retail trade sectors contributed significantly to the job gains, adding 21,000 positions. However, the sector is still down 50,000 jobs from a year ago. Finance, insurance, real estate, rental and leasing added 18,000 jobs last month, while professional, scientific and technical services added 17,000.

The public administration sector shed 15,000 jobs, and the agricultural sector lost 9,600 jobs in July. Desjardins managing director Royce Mendes said the labour market still has a long road to recovery and that a Bank of Canada interest rate hike isn't likely until 2027.