Canada Adds 75,000 Jobs as Unemployment Falls to 6.4%

Canada’s labour market strengthened in July 2026 as employment rose by 75,000 jobs and the national unemployment rate fell to 6.4%, according to Statistics Canada. The unemployment rate reached its lowest level since July 2024 and declined for a third straight month.

Employment Continues to Rise

The July increase lifted the employment rate to 60.9%. Since April, employment has grown by 181,000 jobs, or 0.9%, with full-time work accounting for much of the increase. The unemployment rate has fallen by 0.5 percentage points since April and was also 0.5 points lower than in July 2025.

Average hourly wages reached $37.17, up 2.8% from a year earlier. That was an increase of $1.01 compared with July 2025.

Core-aged workers drove much of July’s gain. Employment among people aged 25 to 54 rose by 51,000. Core-aged women accounted for 33,000 of those jobs, while their unemployment rate fell by 0.3 percentage points to 5.2%. The rate for core-aged men remained relatively steady at 5.8%.

Retail, Finance and Construction Add Jobs

Several industries added workers during the month. Wholesale and retail trade led with 21,000 new jobs, an increase of 0.7%.

Finance, insurance, real estate, rental and leasing gained 18,000 positions, professional, scientific and technical services added 17,000, and construction increased by 16,000.

Private-sector employment rose by 58,000, while self-employment increased by 44,000. Public-sector employment fell by 27,000. Since April, private-sector employment has increased by 146,000 and self-employment by 73,000.

Ontario Leads Provincial Gains

Ontario recorded the largest provincial gain, adding 52,000 jobs, or 0.6%. Its unemployment rate fell to 6.8%, down from 7.9% in December 2025.

British Columbia added 18,000 jobs and saw its unemployment rate fall to 6.2%, down from a recent high of 6.8% in May.

Manitoba added 5,900 jobs, while its unemployment rate dropped to 5.0%. Nova Scotia gained 4,600 jobs, bringing employment to 12,000 above its level a year earlier. Its unemployment rate stood at 6.2%.

Alberta’s monthly employment was little changed, but employment was 91,000 higher than in July 2025, a 3.5% increase and the strongest proportional year-over-year gain among the provinces. Alberta’s unemployment rate remained at 7.0%, although it was 0.9 percentage points lower than a year earlier.

Youth Unemployment Remains Elevated

Youth continued to face tougher conditions. The unemployment rate for people aged 15 to 24 was 12.6%, little changed from June but below the 14.3% peak recorded in April.

Returning students had an unemployment rate of 15.1%, down from 17.5% a year earlier. Among returning students aged 20 to 24, unemployment fell to 6.3%, the lowest July rate for that group since 2018.

What It Means for Newcomers

For newcomers and people considering work or immigration in Canada, the figures provide useful context but do not guarantee employment or immigration eligibility.

Hiring conditions vary by province, occupation, language ability, experience, local demand and licensing requirements. Regulated professions may also require credential recognition before a person can work.

The July report points to stronger employment momentum across several parts of the economy, but job prospects still differ widely by region and occupation. Prospective workers should compare local demand, wages, immigration rules and licensing requirements before making decisions carefully.