Canada Adds 75,000 Jobs in July; Unemployment Falls to Two-Year Low
Canada's labour market showed unexpected strength in July 2026, adding 75,000 jobs and pushing the unemployment rate down to 6.4%, its lowest level in two years. The gain exceeded economist forecasts and signals the economy may be recovering despite ongoing trade uncertainty.
Jobs Growth Strengthens as Recovery Takes Shape
Canada added 75,000 new jobs in July, lowering the unemployment rate to 6.4 per cent, its lowest level in two years. Economists in a Reuters poll ahead of the release predicted a modest 15,000-job gain, making July's result a significant surprise to the upside.
July's job growth was split between full- and part-time work, with Ontario adding 52,000 jobs. Since April, jobs in Canada have increased by 181,000 and the unemployment rate has declined by half a percentage point, declining for three consecutive months. One month of positive data can be noise, but three months in a row starts to look more like a trend.
Wage Growth Slows But Remains Solid
Average hourly wages were up 2.8 per cent in July year-over-year, though it decelerated from 3.3 per cent growth in June. Much of July's job gains were in the wholesale and retail trade sectors, which added 21,000 positions — though the sector is still down 50,000 jobs from a year ago.
While the labour market is improving, economists remain cautiously optimistic. RBC assistant chief economist Nathan Janzen said "The labour market is not yet strong. The unemployment rate is still higher than normal, and wage growth slowed in July".
For expats and newcomers: If you're job-hunting in Canada, the recent momentum suggests improving opportunities. However, with unemployment still above historical norms and wage growth decelerating, this is a market where skills and networking matter. Consider targeting growing sectors like health care and education, which have shown consistent hiring momentum.
Sources
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