Canada's Labour Market Defies Trade Tensions with 75,000 New Jobs

Canada's economy added 75,000 jobs in July, bringing the unemployment rate down to its lowest level in two years. The labour market has shown resilience despite ongoing trade tensions with the United States.

The employment growth was evenly split between full-time and part-time positions, and spread across several sectors including finance and construction. This significantly exceeded analysts' expectations of about 20,000 new jobs.

Statistics Canada attributed the gain to businesses adapting to the impact of US President Donald Trump's trade restrictions. The Bank of Canada also assessed that businesses are adjusting to these changes.

The figures contrasted sharply with those in the United States, which recorded a loss of 23,000 jobs in July. TD Bank said the labour market was showing 'clear signs of recovery', but warned that risks to the economy remained due to ongoing trade tensions.