The Canadian labor market continued to improve in July, with stronger employment growth and the jobless rate reaching its lowest point in two years, the country's statistical agency said on Friday.
Employment rose by 75,000 jobs, or 0.4% monthly, while the unemployment rate eased 0.1 percentage point to 6.4%, its lowest level since July 2024, said Statistics Canada in its monthly Labour Force Survey (LFS).
July's job gains easily topped a 20,000 expected increase and a 6.5% unemployment rate forecast in a Bloomberg survey.
The strongest employment gains came from core-aged workers aged 25 to 54, where employment rose by 51,000, or 0.4% monthly, led largely by an increase of 33,000 jobs, or 0.5%, among women, added StatsCan.
July employment growth was supported by strength across multiple sectors, with wholesale and retail trade adding 21,000 positions, while finance, insurance, real estate, rental and leasing, professional services, and construction recorded gains of 18,000, 17,000 and 16,000, respectively. These improvements were partly offset by employment declines in public administration and agriculture.
Wage growth slowed down in July, with average hourly earnings rising 2.8% year over year to C$37.17, following a 3.3% increase in June, the agency said.
The monthly LFS estimates are based on a sample and are as such subject to sampling variability. As a result, monthly estimates will show more variability than trends observed over longer time periods. This analysis focuses on differences between estimates that are statistically significant at the 68% confidence level. The LFS estimates at the Canada level do not include the territories.