Business

Canada added 94,000 jobs in July, pushing jobless rate down to 7.5%

Canada's economy added 94,000 jobs in July, far fewer than what economists were expecting, but enough to push the jobless rate down to 7.5 per cent.

Total employment is still 246,000 positions below where it was in February 2020

Canada's economy has added more than 300,000 jobs since May, but overall there are still fewer Canadians with a job today than there were before the pandemic. (Tony Dejak/The Associated Press)

Canada's economy added 94,000 jobs in July, far fewer than what economists were expecting, but enough to push the jobless rate down to 7.5 per cent.

Statistics Canada reported Friday that almost all of the new jobs came in Ontario, which added 72,000 jobs. Manitoba, Nova Scotia and Prince Edward Island also added jobs, while everywhere else, job levels were either down or unchanged.

Almost all of the new jobs came in the private sector and most were full-time, too.

July's job gains come on the heels of 231,000 jobs added the month before, as the economy started to reopen from the third Canadian wave of COVID-19. Economists had hoped that momentum might continue into July, but the job gains came in far lower than the 165,000 that was expected.

July's numbers mean Canada's economy still has 246,000 fewer jobs than it did in February 2020, before the pandemic started.

While below expectations, Bank of Montreal economist Doug Porter noted that the job market seems to at least be headed in the right direction.

"Today's jobs report may have been a bit shy of lofty expectations, but we would still give this report a solid silver medal," he said. "Looking ahead, there will likely be one more seriously strong result for the current month, and then employment gains will likely settle into a long slog — after the reopening gains are done, and the global economy will be dealing with delta. But this is a sturdy step in the right direction."

Leah Nord with Canada's Chamber of Commerce says July's job numbers show just how long and slow the economic recovery from COVID-19 will be.

Job vacancies are going unfilled in many parts of the economy, which is highly unusual, she notes, and a sign that the pandemic may have fundamentally changed the job market.

"Many Canadians have re-prioritized their lives during the pandemic and are looking for hybrid work models, which businesses continue to explore while taking into consideration operational, health and safety, legal and other considerations," Nord said.

"We expect the full impact of this underlying trend to be felt over the next 18 months, and it will have profound effects on how businesses compete for talent."

ABOUT THE AUTHOR

Pete Evans

Senior Business Writer

Pete Evans is the senior business writer for CBCNews.ca. Prior to coming to the CBC, his work has appeared in the Globe & Mail, the Financial Post, the Toronto Star, and Canadian Business Magazine. Twitter: @p_evans Email: pete.evans@cbc.ca

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Become a CBC Member

Join the conversation  Create account

Already have an account?

now