Canada adds 75,100 jobs in July, unemployment dips to 6.4%

Canada's labour market delivered a robust performance in July, with the economy adding a net 75,100 jobs, according to fresh data from Statistics Canada. The unemployment rate eased to 6.4%, its lowest level in two years, down from 6.5% in June.

The gains were almost evenly split between full-time and part-time positions. Full-time employment rose by 38,600, while part-time work increased by 36,600. This marks a significant acceleration from June, when the economy added just 18,200 net jobs.

Sector-wise, the services industry drove most of the expansion, adding 64,400 net positions. Wholesale and retail trade, along with finance, insurance, real estate, rental and leasing, were the leading contributors. The goods-producing sector added 10,800 jobs, with construction accounting for the bulk of that growth.

The labour force participation rate ticked up to 65.1% from 65.0%, and the total labour force grew to 22.669 million. Average hourly wages for permanent employees rose 3.0% year-over-year to C$38.79.

The July figures came in well ahead of analyst expectations, which had forecast only 16,500 new jobs and an unemployment rate holding steady at 6.5%.