Canada's Unemployment Rate Drops to 6.4% as Labour Market Shows Signs of Stability

Canada's labour market showed signs of stability in July, according to new numbers from Statistics Canada. The national unemployment rate dropped to 6.4 per cent, its lowest level since July 2024.

The country added 75,000 jobs last month, marking the third straight month where the unemployment rate fell. This is also half a percentage point lower than the same period last year.

Economists had predicted that the labour market was stabilizing after a mild contraction in the first quarter of the year. The economy likely fared better in the second quarter, with real GDP growing 3.4 per cent on an annualized basis over three months.