July 2026 Labour Force Survey: Canada’s Labour Market Strengthens as Employment Grows
4 minutes
27th of August, 2026 Adecco
Canada’s labour market strengthened in July 2026, with employment increasing by 75,000, or 0.4%, and the employment rate rising 0.1 percentage points to 60.9%. At the same time, the unemployment rate declined to 6.4%, its lowest level since July 2024.
According to Statistics Canada’s Labour Force Survey (LFS), employment gains were concentrated among core-aged workers, particularly women. Growth was also recorded across several industries and provinces, while average hourly wages continued to increase year over year.
Here’s a closer look at what the July data tell us about Canada’s labour market.
Employment and the unemployment rate in July
Employment increased by 75,000 in July, bringing the latest monthly employment growth to 0.4%. The employment rate also increased, rising 0.1 percentage points to 60.9%.
The unemployment rate declined by 0.1 percentage points to 6.4%, marking the third consecutive monthly decline and a decrease of 0.5 percentage points since April. The July unemployment rate was the lowest recorded since July 2024.
Employment gains were split between full-time and part-time work. Since April, total employment has increased by 181,000, or 0.9%, with growth driven by full-time employment.
The July results also show changes across different types of employment. Private sector employment increased by 58,000, or 0.4%, while self-employed workers increased by 44,000, or 1.6%. Public sector employment declined by 27,000, or 0.6%.
Overall, the latest LFS points to strengthening employment conditions, with both the employment rate and total employment increasing while the unemployment rate declined.
Core-aged women and men see employment gains
Employment growth in July was concentrated among people aged 25 to 54, also referred to as core-aged workers.
Employment among this group increased by 51,000, or 0.4%, with most of the growth coming from women. Employment among core-aged women increased by 33,000, or 0.5%, while their unemployment rate declined by 0.3 percentage points to 5.2%.
Employment among core-aged men increased by 18,000, or 0.2%. Their unemployment rate remained little changed at 5.8%.
The July results also provide insight into other age groups. Employment among youth aged 15 to 24 increased by 0.8%, while their unemployment rate was little changed at 12.6%.
Among people aged 55 and older, the unemployment rate remained stable at 5.2%, as did the employment rate.
The data therefore show that July’s employment gains were particularly concentrated among core-aged workers, with women accounting for a larger share of the increase.
Full-time employment and part-time work both increase
The July data show growth in both full-time employment and part-time work, although the patterns varied by age and sex.
Among people aged 25 and over, full-time employment increased by 0.2%. Full-time employment among women increased by 0.4%, while it remained stable among men.
Part-time employment among people aged 25 and over increased by 1.3%, with growth among both women and men. Part-time employment increased by 1.4% among women and 1.2% among men.
Among youth aged 15 to 24, both full-time and part-time employment increased, by 0.4% and 0.3%, respectively.
For people aged 55 and older, employment increased among women by 0.9%, while employment among men in this age group declined.
These figures provide a more detailed picture of July’s employment growth, showing that changes occurred across both full-time work and part-time work.
Ontario leads provincial employment gains
Employment gains were concentrated in several provinces in July, led by Ontario, British Columbia, Manitoba and Nova Scotia.
Employment in Ontario increased by 0.6%, marking the province’s third employment increase in four months. Ontario’s unemployment rate also declined by 0.2 percentage points to 6.8% in July.
Employment in British Columbia increased by 0.6%, while Manitoba recorded a 0.8% increase. Nova Scotia saw the largest monthly increase among these provinces, with employment rising by 0.9%.
Employment was little changed in Quebec and Alberta. Alberta continued to record year-over-year employment growth, while employment and the unemployment rate in Quebec remained relatively stable.
The provincial results demonstrate that employment conditions continued to vary across Canada, with Ontario and several other provinces recording notable monthly gains.
Wholesale and retail trade leads industry job gains
Several industries recorded employment gains in July, led by wholesale and retail trade, where employment increased by 0.7%.
Employment also increased in finance, insurance, real estate, rental and leasing, which recorded a 1.2% gain. Professional, scientific and technical services increased by 0.8%, while employment in construction rose by 1.0%.
Not all industries experienced growth. Employment declined by 1.2% in public administration and by 4.3% in agriculture.
The industry-level results highlight the varied nature of Canada’s labour market in July. While several major industries recorded job gains, others experienced declines.
Wage growth continues in July
In addition to employment growth, July’s LFS results show continued wage growth.
Average hourly wages among employees increased by 2.8% year over year in July, rising by $1.01 to $37.17. This followed a 3.3% year-over-year increase in June.
The July wage data provide additional context for the broader employment picture. Alongside the increase in employment and decline in the unemployment rate, average hourly wages continued to rise year over year.
Summer job market improves for returning students
The July Labour Force Survey also highlights an improvement in the summer job market for returning students aged 15 to 24 compared with the previous year.
The unemployment rate for returning students was 15.1% in July, down 2.4 percentage points from July 2025.
Among employed returning students, the largest shares worked in retail trade, accommodation and food services, and information, culture and recreation. Retail trade accounted for 24.8% of employed returning students, followed by accommodation and food services at 22.0% and information, culture and recreation at 14.5%.
Average weekly wages for employed returning students increased by 2.9% year over year, reaching $523.05.
The results provide a snapshot of how the summer job market changed for returning students and the industries where employed students were most commonly working.
Key takeaways from the July 2026 LFS
The July 2026 Labour Force Survey points to strengthening labour market conditions across Canada.
Employment increased by 75,000, or 0.4%, while the employment rate rose to 60.9%. The unemployment rate declined to 6.4%, its lowest level since July 2024 and the third consecutive monthly decline.
Employment growth was concentrated among core-aged workers, particularly women. Core-aged women saw employment increase by 33,000, while their unemployment rate declined to 5.2%. Employment among core-aged men increased by 18,000, while their unemployment rate remained little changed at 5.8%.
At the provincial level, employment gains were led by Ontario, British Columbia, Manitoba and Nova Scotia. At the industry level, wholesale and retail trade, finance, insurance, real estate, rental and leasing, professional, scientific and technical services, and construction all recorded employment gains.
The July results also point to continued wage growth, with average hourly wages increasing 2.8% year over year to $37.17.
For employers and professionals following Canada’s labour market, the July LFS provides a detailed view of where employment is growing, how different groups of workers are experiencing those changes, and how conditions vary across provinces and industries.