Is Canada turning the corner?
Canada's unemployment rate fell to 6.4 per cent in July 2026, its lowest level in two years, as the economy added 75,000 jobs during the month, Statistics Canada reported on August 7, 2026.
The 0.1 percentage point decline marked the third consecutive monthly decrease in the unemployment rate, which has dropped 0.5 percentage points since April 2026. The employment rate rose 0.1 percentage points to 60.9 per cent.
Finance sector among the month's winners
Employment in finance, insurance, real estate, rental and leasing grew by 18,000 jobs, a 1.2 per cent increase, in July. Gains were also recorded in wholesale and retail trade (+21,000; +0.7%), professional, scientific and technical services (+17,000; +0.8%), and construction (+16,000; +1.0%). Public administration shed 15,000 positions, a decline of 1.2 per cent.
Private sector employment rose by 58,000 (+0.4%), while self-employed workers increased by 44,000 (+1.6%). Public sector employment fell by 27,000 (-0.6%).
Ontario drives national gains
Ontario accounted for the largest provincial increase, adding 52,000 jobs (+0.6%) in July. The province's unemployment rate fell to 6.8 per cent, down from a recent high of 7.9 per cent in December 2025. British Columbia added 18,000 jobs (+0.6%), with unemployment there declining to 6.2 per cent. Manitoba (+5,900; +0.8%) and Nova Scotia (+4,600; +0.9%) also recorded gains.
Quebec's employment was little changed in July, with an unemployment rate of 5.6 per cent. Alberta's employment was similarly flat month-over-month, though it was up 91,000 (+3.5%) on a year-over-year basis. Alberta's unemployment rate held at 7.0 per cent.
Wage growth continues to moderate
Average hourly wages among employees rose 2.8 per cent year-over-year in July 2026, reaching $37.17, according to Statistics Canada. That compares with growth of 3.3 per cent recorded in June 2026.
Core-aged women (25 to 54 years old) saw the unemployment rate fall 0.3 percentage points to 5.2 per cent in July, while the rate for core-aged men held steady at 5.8 per cent. The employment rate for core-aged women rose to 81.2 per cent, above the pre-pandemic average of 79.1 per cent recorded from 2017 to 2019.
The youth unemployment rate (ages 15 to 24) was 12.6 per cent in July, down from a recent peak of 14.3 per cent in April 2026.
