{"id":805850,"date":"2026-08-07T15:30:12","date_gmt":"2026-08-07T15:30:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/805850\/"},"modified":"2026-08-07T15:30:12","modified_gmt":"2026-08-07T15:30:12","slug":"canadas-economic-tides-are-turning-following-julys-jobs-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/805850\/","title":{"rendered":"Canada\u2019s economic tides are turning following July\u2019s jobs report"},"content":{"rendered":"<p>July\u2019s jobs report marks a turning of the tides as the Canadian economy embarks on a path of expansion.<\/p>\n<p>Canada added 75,000 jobs last month, which vastly exceeded expectations and brought the unemployment rate down to 6.4 per cent\u2014the lowest in two years.<\/p>\n<p>Looking ahead, we expect Canada\u2019s economic recovery to continue after the contraction earlier this year <a href=\"https:\/\/rsmcanada.com\/insights\/economics\/canada-economic-outlook-global-volatility.html\" rel=\"nofollow noopener\" target=\"_blank\">due to trade friction with the United States<\/a>.<\/p>\n<p>The unemployment rate should continue on its downward trend, especially since population growth\u2014and therefore workforce growth\u2014has not only slowed, but reversed. Canada\u2019s population has declined since its peak in the second quarter of 2025 due to more restrictive immigration policies.<\/p>\n<p>That said, the Bank of Canada is still expected to hold its key interest rate for the rest of 2026 year due to uncertainty regarding the outcome of trade negotiations with the U.S.<\/p>\n<p>Canada also seems to be finding its footing in a world with constant trade uncertainty. Investments have increased in recent months, which will have a positive effect on jobs and the economy overall.<\/p>\n<p>Wage growth reached 2.8 per cent on annual basis\u2014down from 3.3 per cent in June but still above headline inflation.<\/p>\n<p><a href=\"https:\/\/realeconomy.wpenginepowered.com\/wp-content\/uploads\/2026\/08\/TU-AUG-7-JOBS.png\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-30466 size-full\" src=\"https:\/\/realeconomy.wpenginepowered.com\/wp-content\/uploads\/2026\/08\/TU-AUG-7-JOBS.png\" alt=\"This chart shows Canada's job gains by sector for July 2026\" width=\"1949\" height=\"1043\"  \/><\/a><\/p>\n<p>Other signs of recovery are ample in Friday\u2019s data. Job gains were entirely concentrated in the private sector and self-employment, along with a favourable summer job market for returning students.<\/p>\n<p>The private sector added 58,000 jobs and the number of self-employed workers rose 44,000, which more than offset the 27,000 drop in the number of public sector employees.<\/p>\n<p>The gains in the private sector and in self-employment continue a trend going back to April, which is a good indicator of rising demand.<\/p>\n<p>Read RSM Canada\u2019s latest analysis in\u00a0<a href=\"https:\/\/rsmcanada.com\/middle-market\/the-real-economy.html\" target=\"_blank\" rel=\"noopener nofollow\">The Real Economy Canada<\/a>\u00a0and subscribe for more updates.<\/p>\n<p>The youth unemployment rate dropped to 12.6 per cent. For returning students, this summer is markedly better than last year; the unemployment rate for returning students aged 20 to 24\u2014those most likely in post-secondary education\u2014fell to 6.3 per cent, the lowest since July 2018.<\/p>\n<p>Wholesale and retail trade led the increases across industries with 21,000 additional jobs, a partial reversal of the downward trend from earlier this year due to uncertainty in the trade situation with the U.S.<\/p>\n<p>Finance, insurance and real estate also added 18,000 jobs, followed by professional, scientific and technical services with 17,000 jobs and construction at 16,000 jobs. There are signs that with government incentives, the construction sector is picking up.<\/p>\n","protected":false},"excerpt":{"rendered":"July\u2019s jobs report marks a turning of the tides as the Canadian economy embarks on a path of&hellip;\n","protected":false},"author":2,"featured_media":805851,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[23,3,21,19,22,20,25,24],"class_list":["post-805850","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-states","tag-america","tag-news","tag-united-states","tag-united-states-of-america","tag-unitedstates","tag-unitedstatesofamerica","tag-us","tag-usa"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/805850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=805850"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/805850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/805851"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=805850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=805850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=805850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}