Canada’s labor market surprised to the downside in July, shedding -40.8k jobs versus expectations of a 15.3k gain. The drop was led by a sharp decline in full-time employment (-51k), and offsetting some of June’s strong 83k rise. Overall job growth has stagnated, with employment up just 27k since January. However, the unemployment rate held steady at 6.9%, slightly better than the expected 7.0%.
Despite the headline job loss, average hourly wages rose 3.3% yoy in July, slightly up from June’s 3.2% yoy. Total hours worked dipped marginally by -0.2% mom, indicating flat momentum in overall labor output. The mixed signals—a steep fall in full-time jobs alongside rising wages—paint a complex picture for policymakers.
, and offsetting some of June’s strong 83k rise. Overall job growth has stagnated, with employment up just 27k since January. However, the unemployment rate held steady at 6.9%, slightly better than the expected 7.0%.){kind=link}