Canadian employment expanded significantly from the previous month, with the economy gaining 75,000 jobs (+0.4 per cent) to 21.215 million in July. The employment rate rose 0.1 points to 60.9 per cent, while the unemployment rate fell 0.1 points to 6.4 per cent. Average hourly wages rose 2.8 per cent year-over-year to $37.17 in July.
           
Employment in B.C. increased by 0.6 per cent to about 2.955 million, with the provincial economy gaining over 17,800 jobs in July. Employment in Metro Vancouver rose by 0.5 per cent to 1.707 million. The unemployment rate in B.C. fell by 0.3 points to 6.2 per cent, while Vancouver's unemployment rate fell by 0.6 points to 6.0 per cent in July. 

July’s jobs report marks a third consecutive month of employment growth, with the economy gaining over 180,000 jobs during that time. Moreover, about 80 per cent of this tally came from private sector job growth, while the unemployment rate fell to its lowest level since July 2024. Altogether, Canada has gained about 68,000 jobs on a cumulative basis in 2026, climbing above zero for the first time this year. We expect the Bank of Canada to continue looking through the Iran conflict and US tariffs by holding the overnight rate at its current level through 2026. However, strong recoveries in the labour market and economy encourage an eventual move back to the Bank’s midpoint of 2.75 per cent in 2027.