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 manufacturing base has been under pressure from tariff-related uncertainty.

The next Labour Force Survey, covering August data, is expected in early September. Statistics Canada’s LFS currently estimates employment levels at around 21.14 million, with participation stable near 65%.

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