Canada’s labour market lost ground in July as employment fell by 41,000 jobs, led by sharp declines among young workers, according to Statistics Canada’s Labour Force Survey.
The national employment rate slipped 0.2 percentage points to 60.7%, while the unemployment rate held steady at 6.9%. The drop follows a strong June, when employment grew by 83,000 jobs.
The losses were concentrated in full-time work, which declined by 51,000 positions. Youth aged 15 to 24 were hardest hit, shedding 34,000 jobs for a 1.2% decrease. Their employment rate fell to 53.6% — the lowest since November 1998 outside the COVID-19 pandemic years.
Core-aged workers, 25 to 54, and those 55 and older saw little change in employment levels. The rate for core-aged women dropped 0.3 percentage points to 80.0%, while core-aged men held steady at 86.5%.
Industries posting the largest declines included information, culture, and recreation, down 29,000 jobs (3.3%), and construction, down 22,000 jobs (1.3%).
Regionally, Alberta lost 17,000 jobs (0.6%) and British Columbia shed 16,000 (0.5%), while Saskatchewan added 3,500 (0.6%). Other provinces were largely unchanged.
Private-sector employment dropped by 39,000 jobs, erasing part of the gains seen in May and June. Public-sector and self-employment levels held steady.
Total hours worked edged down 0.2% from June and were up only 0.3% from a year earlier. Average hourly wages grew 3.3% from July 2024, rising $1.17 to $36.16.
Statistics Canada said overall job growth has been minimal since January, with just 27,000 more people employed than at the start of the year — a gain of 0.1%.