FX.co ★ Canada Unemployment Rate Falls to 2-Year Low

Canada’s unemployment rate edged down to 6.4% in July 2026 from 6.5% in June, defying market expectations that it would remain unchanged and reaching its lowest level in two years. Net employment increased by 75,100, far surpassing forecasts for a 15,000 gain and marking a third consecutive monthly rise in jobs. The number of unemployed persons declined by 14,500, to 1,455,000.

Among core-aged workers, the unemployment rate for women fell to a record low of 5.2%, staying well below the 5.8% rate for core-aged men. The youth unemployment rate also eased, slipping to 12.6% from 12.7% a month earlier.

The combination of strong job creation and lower unemployment coincided with a 0.1 percentage point increase in the labor force participation rate, which rose to 65.1%, its highest level so far this year.