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Canada adds 75,000 jobs in July, unemployment 6.4%

financeAug 7, 202641935

Statistics Canada reported a surprise gain of 75,000 jobs in July, far above the Reuters poll expectation of a 15,000 increase, and pushed the unemployment rate down 0.1 percentage points to 6.4 per cent, a two-year low. The agency said the July gains were split between full-time and part-time work, leaving Canada up 181,000 jobs since April and 196,000 from a year earlier. Sector detail showed wholesale and retail added 21,000 positions (though that sector remains down 50,000 year over year), finance and real estate added 18,000, and professional, scientific and technical services added 17,000, while public administration lost 15,000 jobs and agriculture lost 9,600. Average hourly wages rose 2.8 per cent year over year in July, slowing from 3.3 per cent in June. CIBC senior economist Andrew Grantham said the figures are consistent with a recovering economy, while RBC assistant chief economist Nathan Janzen warned the labour market is not yet strong because unemployment remains above normal and wage growth cooled. Desjardins managing director Royce Mendes said the labour market still has a long road to recovery and does not expect a Bank of Canada rate hike until 2027.

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