Canada’s labour market lost momentum in July, with national employment falling by 41,000, or 0.2 percent, marking a partial reversal after strong gains in June. The employment rate declined 0.2 percentage points to 60.7 percent, while the unemployment rate held steady at 6.9 percent.
The setback was concentrated among youth aged 15 to 24, who accounted for a loss of 34,000 positions, or 1.2 percent. Their employment rate fell to 53.6 percent, the lowest level since late 1998, excluding pandemic years. Meanwhile, employment for core-aged Canadians, those aged 25 to 54, and those 55 and older was largely unchanged.
Losses were spread across several sectors, led by information, culture and recreation, which shed 29,000 jobs (down 3.3 percent). The construction sector lost 22,000 positions (down 1.3 percent), while business, building, and other support services, as well as health care and social assistance, also recorded notable decreases. Transportation and warehousing bucked the trend, adding 26,000 jobs, the first increase since January.
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Regionally, employment declined in Alberta (down 17,000, or 0.6 percent) and British Columbia (down 16,000, or 0.5 percent), with both provinces seeing higher unemployment rates. Saskatchewan posted a modest job gain of 3,500, pushing its unemployment rate to the country’s lowest at 5.0 percent.
Average hourly wages continued to rise, up 3.3 percent year-over-year to $36.16. However, labour market participation also eased, with the participation rate edging down to 65.2 percent. The proportion of long-term unemployed was at its highest since 1998, highlighting persistent challenges for job seekers amid ongoing economic uncertainty.
Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
