August 17, 2026

In July of 2026, employment increased by 75,000 (+0.4%) in July and the employment rate rose 0.1 percentage points to 60.9%. The unemployment rate declined 0.1 percentage points to 6.4%.

Employment rose among core-aged people (25 to 54 years old) (+51,000; +0.4%), mostly for women in that age group (+33,000; +0.5%).

The unemployment rate for core-aged women fell 0.3 percentage points to 5.2%, while it held steady for core-aged men (5.8%), youth (12.6%), and people aged 55 and older (5.2%).

Employment increased in wholesale and retail trade (+21,000; +0.7%); finance, insurance, real estate, rental and leasing (+18,000; +1.2%); professional, scientific and technical services (+17,000; +0.8%); as well as in construction (+16,000; +1.0%). In contrast, employment declined in public administration (-15,000; -1.2%) and agriculture (-9,600; -4.3%).

There were more people working in Ontario (+52,000; +0.6%), British Columbia (+18,000; +0.6%), Manitoba (+5,900; +0.8%), and Nova Scotia (+4,600; +0.9%).

Average hourly wages among employees were up 2.8% (+$1.01 to $37.17) on a year-over-year basis in July, following growth of 3.3% in June (not seasonally adjusted).

Employment rises in July

Employment increased by 75,000 (+0.4%) in July, with gains split between full-time and part-time work. Since April, total employment was up by 181,000 (+0.9%), driven by a rise in full-time work (+193,000; +1.1%).

Chart 1
Employment rate increases in July

The employment rate—the proportion of the population aged 15 and older who are employed—increased by 0.1 percentage points to 60.9% in July. The rate was up 0.2 percentage points compared with 12 months earlier.

Infographic 1
Employment rate by age group, July 2026

In July, the number of private sector employees rose (+58,000; +0.4%), as did the number of self-employed workers (+44,000; +1.6%). These gains were partially offset by a decline in the number of public sector employees (-27,000; -0.6%). Since April, employment growth has been concentrated among private sector employees (+146,000; +1.1%) and self-employed workers (+73,000; +2.7%).

Unemployment rate decreases to 6.4%, lowest level in two years

In July, the unemployment rate decreased 0.1 percentage points to 6.4%. This was the lowest rate since July 2024.

Chart 2
Unemployment rate falls for the third consecutive month to reach a two-year low of 6.4% in July

This marked the third consecutive monthly decrease for the unemployment rate, which has fallen by 0.5 percentage points since April. The rate was also down 0.5 percentage points on a year-over-year basis in July.

A higher proportion of people searching for work have been finding jobs compared with last year. The job finding rate—the proportion of unemployed people who found a job between June and July—was 20.8%. This was up from 18.5% for the same period a year earlier but below the pre-COVID-19 pandemic average of 26.6% recorded for the same period from 2017 to 2019 (not seasonally adjusted).

Unemployment rate falls for core-aged women

Among core-aged women (25 to 54 years old), the unemployment rate fell 0.3 percentage points to 5.2% in July, coinciding with an increase in employment for this group (+33,000; +0.5%). For core-aged men, the unemployment rate was little changed at 5.8% and employment edged up (+18,000; +0.2%).

Infographic 2
Unemployment rate by age group, July 2026

The employment rate for core-aged women rose 0.4 percentage points to 81.2% in July and was up 1.1 percentage points on a year-over-year basis. The employment rate for this group in July was higher than the corresponding pre-pandemic average of 79.1%, observed from 2017 to 2019. For core-aged men, the employment rate was 86.5% in July, little changed from the previous month and on a year-over-year basis and virtually the same as the pre-pandemic average of 86.4%.

For people aged 55 and older, the unemployment rate was 5.2%, little changed in July and compared with 12 months earlier. The employment rate for people in this age group was little changed in July at 33.4%.

Youth unemployment rate holds steady in July

The unemployment rate for youth (15 to 24 years old) was virtually unchanged in July (-0.1 percentage points to 12.6%) and was down from a recent peak of 14.3% in April. On a year-over-year basis, the youth unemployment rate was down 1.9 percentage points in July. The youth unemployment rate in July remained higher than the pre-pandemic average of 10.8% from 2017 to 2019.

Although the overall youth unemployment rate has recorded declines in recent months, it remains elevated for certain population groups. Among the three largest racialized groups in Canada, the unemployment rate was highest among Black youth, at 22.6% in July 2026, little changed from 23.4% in July 2025 and 23.3% in July 2024 (three-month moving averages, not seasonally adjusted). Compared with July 2025, the unemployment rate among Chinese youth declined by 5.1 percentage points to 15.4% in July 2026, while the rate among South Asian youth fell by 3.2 percentage points to 13.9%.

Chart 3
Youth unemployment rate for the three largest racialized groups in Canada, month of July

More favourable summer job market for returning students in 2026 compared with 2025

From May to August, the Labour Force Survey (LFS) collects labour market information about students who attended school full time in March and who intend to return to school full time in the fall.

The unemployment rate for returning students aged 15 to 24 was 15.1% in July, down 2.4 percentage points from July 2025 (17.5%) (not seasonally adjusted). The rate in July 2026 remained higher than the pre-pandemic average of 12.6% for the same month from 2017 to 2019.

Chart 4
Unemployment rate for returning students, month of July, 1977 to 2026

For returning students aged 20 to 24—those most likely to be in post-secondary education—the unemployment rate was 6.3% in July, the lowest rate for this group since July 2018. Meanwhile, for returning students aged 15 to 16, the rate was 28.5% in July, compared with 31.4% observed in July 2025 and July 2024. The rate for returning students aged 17 to 19 was 17.6% in July 2026, little changed compared with 12 months earlier.

Among returning students aged 15 to 24 who were employed in July, most worked in retail trade (24.8%), accommodation and food services (22.0%) and information, culture and recreation (14.5%). For those who were employees, their average weekly wages were $523.05, up 2.9% compared with 12 months earlier.

Employment grows in several industries, led by wholesale and retail trade

Wholesale and retail trade (+21,000; +0.7%) recorded the largest employment increase across industries in July. Despite the monthly increase, employment in this industry was down by 50,000 (-1.7%) compared with 12 months earlier, largely reflecting a downward trend observed from January to May 2026.

Chart 5
Employment change by industry, July 2026

Employment also rose in July in finance, insurance, real estate, rental and leasing (+18,000; +1.2%), professional, scientific and technical services (+17,000; +0.8%) and construction (+16,000; +1.0%). Despite recording monthly gains, employment in these three industries was little changed on a year-over-year basis.

Employment gains concentrated in Ontario

Employment in Ontario increased by 52,000 (+0.6%) in July, the third increase in four months with a net gain of 119,000 (+1.5%) over this period. The unemployment rate in Ontario declined 0.2 percentage points to 6.8% in July. The rate was down from a recent high of 7.9% in December 2025 and was the lowest rate for this province since July 2024.

Map 1
Unemployment rate by province and territory, July 2026

Employment in British Columbia was up by 18,000 (+0.6%) in July, continuing an upward trend since May. The unemployment rate in British Columbia (6.2%) was down for the second consecutive month in July from a recent high of 6.8% in May 2026.

Employment rose in Manitoba (+5,900; +0.8%) in July, the first monthly increase since March. The unemployment rate in the province was down 0.4 percentage points to 5.0% in July, matching the rate in April.

In Nova Scotia, employment increased by 4,600 (+0.9%) in July, the second consecutive monthly increase. Year over year, employment in this province was up by 12,000 (+2.4%). The unemployment rate in Nova Scotia was 6.2%, little changed in the month but down 0.7 percentage points compared with 12 months earlier.

Employment in Quebec was little changed both in July and compared with 12 months earlier and the unemployment rate was also little changed at 5.6% over the same periods.

In Alberta, employment was little changed in July but was up by 91,000 (+3.5%) on a year-over-year basis, the largest proportional increase among the provinces. The unemployment rate in Alberta held steady at 7.0% in July and was down 0.9 percentage points compared with the same month in 2025.

Among the three largest census metropolitan areas, the unemployment rate rose by 0.7 percentage points to 6.6% in Montréal, offsetting a similar-sized decline in the previous month. In Vancouver, the unemployment rate fell 0.6 percentage points to 6.0% in July. The unemployment rate was little changed in Toronto at 6.7%; however, it was down from a recent high of 9.0% observed in July 2025.

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