Canada Unemployment Steady at 6.9% Despite July Job Losses

Canada's unemployment rate remained steady at 6.9% in July 2025 despite a significant net loss of 40,800 jobs, marking the sharpest decline since early 2022. The job losses were primarily among full-time positions and concentrated in youth aged 15 to 24, with youth unemployment rising to 14.6%, the highest level outside the pandemic since 2010. The labor force participation rate fell slightly to 65.2%, and long-term unemployment rose to 23.8%, the largest share since 1998 excluding pandemic years. This job market softness contrasts with economists' expectations of a modest employment rise and a 7% unemployment rate. The data reflect ongoing economic challenges, including impacts from U.S. trade policies and tariffs, which threaten further deterioration in Canada's labor market. Overall, unemployed Canadians are facing increasing difficulty finding work, with a higher proportion remaining unemployed month-to-month compared to the previous year.