Canadian economy adds 75,100 jobs as unemployment hits two-year low

Canada’s labor market just put together its strongest month in a while. The economy added 75,100 jobs in July, according to Statistics Canada’s Labour Force Survey released on August 7, and the unemployment rate fell to 6.5%, its lowest level in two years. To put that number in perspective, June managed a mere 18,000 new positions. July’s result is more than four times that. The numbers behind the rebound May saw a gain of 88,000 jobs, which represented a 0.4% increase in total employment. That strong showing pulled the unemployment rate down by 0.3 percentage points, from 6.9% territory to 6.6%. Then came June’s relative quiet. Only 18,000 jobs were added, a gain of just 0.1%. The unemployment rate ticked down slightly to 6.5%. July’s surge now reinforces that downward trend in unemployment. At 6.5%, Canada’s jobless rate sits at its lowest point since mid-2024. The unemployment rate peaked earlier in the year closer to 7.1% in September 2025 before beginning its descent. Why this matters beyond the headline The composition of these jobs matters. Analysts have been watching the split between services employment and goods-producing sectors like manufacturing, as Canada’s manufactur...