Canada’s labour market took a hit in July, losing 41,000 jobs, according to new figures released Friday by Statistics Canada. Despite the decline, the national unemployment rate held steady at 6.9%, as the number of job seekers remained largely unchanged from the previous month.
The job losses were concentrated in full-time employment, with 51,000 full-time positions disappearing. The private sector bore most of the brunt.
Young workers were particularly affected:
- 34,000 jobs were lost among Canadians aged 15 to 24,
- Dropping the youth employment rate to 53.6%—the lowest level since November 1998, excluding the COVID-19 pandemic years.
The sharp drop follows an unexpected gain of 83,000 jobs in June, partially offsetting last month’s positive trend.
Sector Breakdown:
- Biggest Declines:
- Information, culture, and recreation: -29,000 jobs
- Construction: -22,000 jobs
- Gains:
- Transportation and warehousing: +26,000 jobs, marking the sector’s first monthly increase since January. Parts of this sector have been affected by shifting U.S. trade demand and tariffs.
- Manufacturing: +5,300 jobs, despite ongoing challenges tied to international tariffs. However, manufacturing employment is still down by 9,400 jobs compared to July 2024.
Other Highlights:
- The layoff rate remained virtually unchanged at 1.1%, similar to July 2024.
- Long-term unemployment rose to 23.8% of all job seekers—meaning nearly 1 in 4 jobless Canadians has been unemployed for 27 weeks or more. This is the highest long-term unemployment share since February 1998, excluding pandemic figures.
- Wage growth remained modest. Average hourly wages increased by 3.3% year-over-year, a slight uptick from June.
Economists say the July report underscores ongoing structural challenges in Canada’s job market, especially for young workers and those in trade-sensitive industries.