Canada Adds 75,000 Jobs in July as Unemployment Falls to Two-Year Low of 6.4%

A Third Straight Monthly Improvement

Statistics Canada's Labour Force Survey, covering the reference week of July 12 to 18, 2026, showed national employment rising by 75,000, or 0.4%, in a release published August 7. It was the third consecutive monthly decline in the unemployment rate, which fell 0.1 percentage points to 6.4% — down half a percentage point since April and the lowest level recorded since July 2024. The employment rate rose 0.1 percentage points to 60.9%, up 0.2 points from a year earlier. Statistics Canada's own "job finding rate" — the share of unemployed people who found work between June and July — rose to 20.8% from 18.5% a year earlier, though it remains below the 26.6% average recorded for the same months from 2017 to 2019, before the pandemic.

Where the Hiring Happened

Wholesale and retail trade posted the largest gain, adding 21,000 jobs (+0.7%), though employment in that sector remains 50,000 lower than a year ago. Finance, insurance, real estate, rental and leasing added 18,000 jobs (+1.2%); professional, scientific and technical services added 17,000 (+0.8%); and construction added 16,000 (+1.0%). Those gains were partly offset by losses in public administration (-15,000; -1.2%) and agriculture (-9,600; -4.3%). By employment type, private-sector payrolls grew by 58,000 and self-employment by 44,000, while public-sector employment fell by 27,000 — a pattern that has held since April, when private-sector and self-employed gains reached 146,000 and 73,000, respectively.

Wages Cool, Even as Job Quality Holds Up

Average hourly wages rose 2.8% year-over-year to $37.17 in July, decelerating from June's 3.3% pace (figures not seasonally adjusted). The moderation comes even as the composition of new jobs looks healthy: employment since April is up 193,000 in full-time work (+1.1%), out of a total gain of 181,000 — meaning part-time work has actually declined slightly over that three-month stretch even as total employment rose.

A Better — But Still Uneven — Picture for Younger Workers

The unemployment rate for core-aged women (25 to 54) fell 0.3 percentage points to 5.2%, while the core-aged men's rate held steady at 5.8%. Youth unemployment (ages 15 to 24) was little changed at 12.6%, down from an April peak of 14.3% and 1.9 points lower than a year earlier, but still above the 10.8% pre-pandemic average. Disparities within that youth figure remain wide: the unemployment rate for Black youth was 22.6% in July, barely changed from 23.4% a year earlier, while rates for Chinese youth (15.4%) and South Asian youth (13.9%) both fell several points year-over-year (three-month moving averages, not seasonally adjusted). Among students returning to school in the fall, the unemployment rate for 15-to-24-year-olds was 15.1% in July, down 2.4 points from a year ago but still above the 12.6% pre-pandemic average for the same month.

Regional Divergence

Ontario drove much of the national gain, adding 52,000 jobs (+0.6%) and pushing its unemployment rate down 0.2 points to 6.8%, the lowest for the province since July 2024. British Columbia (+18,000), Manitoba (+5,900) and Nova Scotia (+4,600) also posted gains. Alberta's employment was little changed in July but is up 91,000, or 3.5%, over the past year — the largest proportional gain of any province — while its unemployment rate held at 7.0%. Quebec was essentially flat on both employment and unemployment. Among the three largest metro areas, Vancouver's unemployment rate fell 0.6 points to 6.0%, Toronto's held near-steady at 6.7%, and Montreal's rose 0.7 points to 6.6%.

Reader Q&A

Q: Is 6.4% unemployment considered high or low for Canada?

A: It's the lowest rate Canada has recorded since July 2024 and down half a point from April 2026's level. Statistics Canada doesn't label any single rate as inherently high or low — interpretation depends on the comparison period, and some measures, like youth unemployment, remain above pre-pandemic norms even as the headline rate improves.

Q: Does adding 75,000 jobs in one month actually move the needle in an economy Canada's size?

A: Yes — it's roughly triple the average monthly pace of the prior three months, and it was large enough on its own to move the national unemployment rate down a full tenth of a percentage point in this single release.

Q: Why did wage growth slow even as hiring picked up?

A: Statistics Canada's release reports the figures — average hourly wages up 2.8% year-over-year in July versus 3.3% in June, not seasonally adjusted — without explaining the mechanism. A wage slowdown alongside stronger hiring can reflect which industries are doing the hiring, among other factors the monthly release doesn't isolate on its own.

Q: Which parts of the country benefited most?

A: Ontario accounted for the largest share of July's gain (+52,000 jobs), with British Columbia, Manitoba and Nova Scotia also posting increases. Alberta's year-over-year employment growth (+3.5%) was the fastest of any province, even though its July month-over-month change was minimal.

Q: Is the youth job market actually improving?

A: Partially. The youth unemployment rate (12.6%) is down significantly from an April 2026 peak of 14.3% and down 1.9 points from a year earlier, but it remains above the 10.8% pre-pandemic (2017-2019) average for July, and gaps between racial groups — highest among Black youth at 22.6% — have narrowed only modestly.