Canada’s labour market strengthened further in July, with employment rising by 75.1K and the unemployment rate edging down to 6.4%, the lowest level in two years. The gains were evenly split between full-time and part-time positions and marked the third consecutive month of improving labour market conditions, extending total employment growth since April to 181,000 jobs. Private-sector hiring and self-employment continued to drive the expansion, while public-sector employment declined.

Job creation was broad-based across industries, led by wholesale and retail trade, finance, insurance, real estate, rental and leasing, professional, scientific and technical services, and construction. These gains were partially offset by declines in public administration and agriculture. Regionally, Ontario accounted for the largest share of new jobs, while British Columbia, Manitoba and Nova Scotia also posted employment gains.

The report also pointed to improving labour market conditions across several demographic groups. Employment increased among core-aged workers (25-54 years old), particularly women, whose unemployment rate fell to 5.2%. Youth unemployment held steady at 12.6%, remaining well below its April peak, while the overall job-finding rate improved compared with a year earlier, suggesting unemployed workers are finding jobs more easily.

Despite the stronger hiring, wage pressures continued to moderate. Average hourly earnings rose 2.8% from a year earlier, slowing from 3.3% growth in June, indicating that while Canada’s labour market remains resilient, wage inflation is easing.