Canada added 75,000 jobs in July and saw its unemployment rate fall to 6.4%, the lowest level since July 2024, according to the Labour Force Survey released by Statistics Canada on August 7, 2026. The report shows the third consecutive monthly drop in unemployment, which has declined 0.5 percentage points since April and is down 0.5 percentage points year-over-year. The employment rate rose 0.1 percentage points to 60.9% in July, continuing a positive trend that's added 181,000 jobs since April.

The July employment gain of 75,000 jobs represented a 0.4% increase, split between full-time and part-time work. Employment rose among core-aged people aged 25 to 54 by 51,000 jobs, mostly driven by women in that age group who gained 33,000 positions. The unemployment rate for core-aged women fell 0.3 percentage points to 5.2%, while it held steady for core-aged men at 5.8%, youth at 12.6%, and people aged 55 and older at 5.2%. The number of private sector employees rose by 58,000 and self-employed workers increased by 44,000, though these gains were partially offset by a decline of 27,000 public sector employees. Since April, employment growth has concentrated among private sector employees, up 146,000, and self-employed workers, up 73,000.

Employment grew across several industries, led by wholesale and retail trade, which added 21,000 jobs or 0.7% in July. Other sectors posting gains included finance, insurance, real estate, rental and leasing, up 18,000 jobs or 1.2%; professional, scientific and technical services, up 17,000 or 0.8%; and construction, up 16,000 or 1.0%. In contrast, employment declined in public administration by 15,000 jobs or 1.2% and in agriculture by 9,600 jobs or 4.3%. Geographically, employment gains concentrated in Ontario, which added 52,000 jobs or 0.6%, marking the third increase in four months with a net gain of 119,000 over that period. Ontario's unemployment rate declined 0.2 percentage points to 6.8%, the lowest for the province since July 2024. Other provinces with employment increases included British Columbia, up 18,000 jobs or 0.6%; Manitoba, up 5,900 or 0.8%; and Nova Scotia, up 4,600 or 0.9%.

The youth unemployment rate held steady at 12.6% in July, down from a recent peak of 14.3% in April and 1.9 percentage points lower year-over-year, though still elevated compared to the pre-pandemic average of 10.8% from 2017 to 2019. The report highlights that unemployment remains particularly high among Black youth, at 22.6% in July 2026, virtually unchanged from 23.4% in July 2025 and 23.3% in July 2024. By comparison, the unemployment rate among Chinese youth declined 5.1 percentage points to 15.4% and among South Asian youth fell 3.2 percentage points to 13.9%. For returning students aged 15 to 24, the unemployment rate was 15.1% in July, down 2.4 percentage points from July 2025, though still above the pre-pandemic average of 12.6%. Average hourly wages among employees were up 2.8%, or $1.01 to $37.17, on a year-over-year basis in July, following growth of 3.3% in June.

The report shows a higher proportion of people searching for work have been finding jobs compared with last year, with the job finding rate at 20.8% between June and July, up from 18.5% for the same period a year earlier, though still below the pre-COVID-19 pandemic average of 26.6% recorded from 2017 to 2019. The employment rate for core-aged women rose 0.4 percentage points to 81.2% in July and was up 1.1 percentage points year-over-year, surpassing the pre-pandemic average of 79.1%. The report notes this marks meaningful progress in labour force participation among women in their prime working years, contrasting with core-aged men whose employment rate remained virtually flat at 86.5%, matching the pre-pandemic average.

Despite the positive momentum, economists caution that challenges remain on the horizon. According to TD Economics, "with the prospect of new tariffs coming into effect on August 19th, the downside risks to the economy remain." Meanwhile, RBC Economics notes that "wage growth was a softer spot in the data, edging down to 2.8% from 3.3% in June," adding that "slower wage data is not surprising — while unemployment has begun to edge lower, it is still elevated and that is expected to keep wage growth under pressure in the near-term." The July figures suggest Canada's labour market is regaining strength after a prolonged soft patch, but external pressures and stubborn pockets of high unemployment—particularly among young Black workers—mean the recovery remains uneven and fragile.