Canada Sheds 41,000 Jobs; Key Sectors Hit

Canada lost approximately 41,000 jobs in July, marking the largest monthly decline since early 2022 and pushing the employment rate to 60.7%. The majority of losses were in full-time positions, with construction, information, culture, recreation, and manufacturing—strained by ongoing U.S. tariffs—most affected. Youth unemployment rose to 14.6%, the highest since 2010 outside of the pandemic, while the national unemployment rate held steady at 6.9%. Population growth is surpassing job creation, intensifying competition for employment, especially among newcomers. Economists warn of possible additional layoffs and a further softening labor market. These trends have led to speculation that the Bank of Canada may lower interest rates if weakness persists.