On This Page You Will Find
- Canada’s latest employment and unemployment figures
- Which industries added the most jobs
- Where employment increased across Canada
- What the figures mean for prospective immigrants
- The latest labour market picture in Ontario, British Columbia and other provinces
- How the Canadian job market is changing for newcomers
- Frequently asked questions about Canada’s labour market
Canada’s labour market strengthened in July, adding 75,000 jobs as the national unemployment rate fell to its lowest level in two years.
The latest Labour Force Survey from Statistics Canada showed employment increased 0.4 per cent during the month, while the employment rate edged up 0.1 percentage points to 60.9 per cent.
Meanwhile, the unemployment rate declined from 6.5 per cent to 6.4 per cent – its third consecutive monthly decline and the lowest rate recorded since July 2024.
The improving labour market provides a more positive backdrop for newcomers and prospective immigrants considering their employment prospects in Canada.
However, the figures also show considerable differences between provinces, industries and age groups. For immigration candidates, the strongest opportunities may increasingly depend on where they intend to settle and the sector in which they work.
Canada Adds 75,000 Jobs In July
Employment increased by 75,000 – or 0.4 per cent – in July, with growth divided between full-time and part-time employment.
The longer-term trend has also improved.
Between April and July, employment increased by 181,000, representing growth of 0.9 per cent. Full-time employment accounted for all of that net growth, increasing by 193,000 during the period.
Private sector employment rose by 58,000 in July, while the number of self-employed workers increased by 44,000.
Public sector employment moved in the opposite direction, declining by 27,000.
The figures suggest that recent employment growth has increasingly come from the private sector. Since April, private sector employment has increased by 146,000, while self-employment has risen by 73,000.
That distinction matters for immigration because many of Canada’s economic immigration programs aim to connect newcomers with private sector labour needs.
Canada’s Unemployment Rate Falls To Two-Year Low
The unemployment rate fell 0.1 percentage points to 6.4 per cent in July.
It marked the third consecutive monthly decline and left unemployment 0.5 percentage points below its April level.
Statistics Canada also found that unemployed Canadians were having more success finding work than they were a year earlier.
The job-finding rate – the proportion of unemployed people who found employment between June and July – reached 20.8 per cent. That compared with 18.5 per cent during the same period in 2025.
However, the rate remains below the 26.6 per cent average recorded between 2017 and 2019, before the COVID-19 pandemic.
For newcomers, the figures point to an improving labour market without suggesting that finding work has become easy. Canada still has significant unemployment and competition for jobs, particularly in some regions and among younger workers.
Which Canadian Industries Are Adding Jobs?
Several industries closely connected to economic immigration recorded employment growth in July.
Wholesale and retail trade posted the largest increase, adding 21,000 jobs – an increase of 0.7 per cent.
However, employment in the sector remained 50,000 below its July 2025 level, meaning the monthly increase followed a longer period of weakness.
Three other industries recorded significant gains:
- Finance, insurance, real estate, rental and leasing – up 18,000 jobs, or 1.2 per cent
- Professional, scientific and technical services – up 17,000 jobs, or 0.8 per cent
- Construction – up 16,000 jobs, or 1.0 per cent
Professional, scientific and technical services are particularly relevant to skilled immigration because the sector includes many technology, engineering and other highly skilled occupations.
Construction also remains important to Canada’s immigration strategy as governments seek workers to support housing construction and major infrastructure projects.
However, the Labour Force Survey shows monthly employment movements rather than immigration-specific worker shortages. Candidates should therefore consider these figures alongside occupation-specific demand, provincial immigration priorities and eligibility requirements.
Employment declined by 15,000 in public administration and by 9,600 in agriculture during July.
Ontario Leads Canada’s Employment Growth
Ontario accounted for most of Canada’s employment increase in July.
Employment in the province rose by 52,000 – or 0.6 per cent – during the month. Ontario has now recorded three monthly increases in four months, producing a net employment gain of 119,000 over that period.
Ontario’s unemployment rate also declined by 0.2 percentage points to 6.8 per cent.
That represents a notable improvement from December 2025, when unemployment reached a recent high of 7.9 per cent.
The figures could be significant for immigration candidates because Ontario remains Canada’s largest provincial labour market and a major destination for newcomers.
British Columbia, Manitoba And Nova Scotia Also Add Jobs
British Columbia added 18,000 jobs in July, an increase of 0.6 per cent.
The province’s unemployment rate fell to 6.2 per cent, down from a recent high of 6.8 per cent in May.
Manitoba added 5,900 jobs – an increase of 0.8 per cent – while its unemployment rate dropped 0.4 percentage points to 5.0 per cent.
Nova Scotia also performed strongly, adding 4,600 jobs in July. Employment in the province was 12,000 – or 2.4 per cent – higher than a year earlier.
Nova Scotia’s unemployment rate stood at 6.2 per cent.
Quebec recorded little change in employment, with unemployment holding at 5.6 per cent.
Alberta Records Strongest Annual Employment Growth
Alberta did not record a significant employment increase in July, but its longer-term performance stands out.
Employment in the province was 91,000 – or 3.5 per cent – higher than in July 2025.
That was the largest proportional year-over-year increase among Canada’s provinces.
Alberta’s unemployment rate remained relatively high at 7.0 per cent, although that represented a decline of 0.9 percentage points compared with July 2025.
For prospective immigrants, the combination highlights why unemployment rates alone do not provide a complete picture of a provincial labour market.
Rapid employment growth can coincide with relatively high unemployment when a province also has strong population or labour force growth.
Toronto Labour Market Improves From 2025
The Labour Force Survey also provides an important signal for newcomers considering Canada’s largest cities.
Toronto’s unemployment rate stood at 6.7 per cent in July. While that represented little monthly change, it was significantly below the recent high of 9.0 per cent recorded in July 2025.
Vancouver’s unemployment rate declined by 0.6 percentage points to 6.0 per cent.
Montréal moved in the opposite direction, with unemployment increasing by 0.7 percentage points to 6.6 per cent.
The figures underline the importance of location when immigrants assess the Canadian job market. National statistics can hide substantial differences between cities and provinces.
Wage Growth Slows To 2.8 Per Cent
Average hourly wages among employees increased by 2.8 per cent year over year in July, reaching $37.17.
That represented an increase of $1.01 per hour compared with July 2025.
However, wage growth slowed from the 3.3 per cent annual increase recorded in June.
Wage trends can be particularly important for temporary foreign workers and employers because wages play a role in several Canadian work permit programs.
Employers using the Temporary Foreign Worker Program, for example, must consider applicable wage requirements when seeking a Labour Market Impact Assessment.
Immigration candidates should not assume that the national average wage represents the salary available in their occupation. Pay can vary considerably according to occupation, province, city and experience.
Labour Market Improves For Students
Canada’s summer job market also improved for returning students.
The unemployment rate among students aged 15 to 24 who planned to return to school in the fall stood at 15.1 per cent in July, compared with 17.5 per cent a year earlier.
Among returning students aged 20 to 24 – the group most likely to attend post-secondary education – unemployment fell to just 6.3 per cent.
That was the lowest July unemployment rate for the group since 2018.
Most returning students who were working had jobs in retail trade, accommodation and food services, and information, culture and recreation.
The figures provide useful context for international students, although Statistics Canada’s returning-student category is not limited to international students.
What Does The Labour Force Survey Mean For Canada Immigration?
The July Labour Force Survey does not directly determine who Canada selects for permanent residence or a work permit.
However, labour market conditions form an important part of the wider economic environment in which immigration policy operates.
Canada increasingly uses economic immigration to respond to specific workforce requirements rather than simply selecting workers based on broad measures of human capital.
Express Entry category-based selection, provincial immigration programs and employer-led pathways can all target candidates according to occupation, sector, location or language ability.
The July figures provide several potentially important signals.
Construction and professional, scientific and technical services both added jobs. Ontario accounted for most of the national monthly employment gain, while Alberta recorded the strongest annual employment growth among the provinces.
At the same time, unemployment remains relatively high in parts of Canada and youth continue to face a more difficult labour market.
Prospective immigrants should therefore avoid interpreting a national increase in employment as evidence that jobs are plentiful everywhere.
The strongest immigration strategy will often involve matching a candidate’s occupation and experience with both immigration eligibility and genuine labour demand in a particular province or community.
Canada Labour Market Shows Signs Of Improvement
The July Labour Force Survey offers some of the clearest evidence in recent months that Canada’s labour market is strengthening.
Canada added 75,000 jobs, unemployment fell for a third consecutive month and the proportion of unemployed people finding work improved compared with a year earlier.
Ontario, British Columbia, Manitoba and Nova Scotia all added employment, while Alberta continued to post strong year-over-year growth.
For immigrants and prospective newcomers, the improvement is encouraging – but the details matter.
Canada does not have a single labour market. Opportunities vary considerably between occupations, industries, provinces and cities.
Candidates who connect their immigration strategy with those regional and sectoral differences may be better positioned to identify where their skills are most in demand.
Frequently Asked Questions
Is Canada’s job market improving in 2026?
Canada’s labour market showed signs of improvement in July 2026. Employment increased by 75,000, while the unemployment rate fell to 6.4 per cent – its lowest level in two years. Employment has increased by 181,000 since April, with recent growth concentrated in private sector and full-time employment.
Which industries added the most jobs in Canada in July?
Wholesale and retail trade added 21,000 jobs in July. Finance, insurance, real estate, rental and leasing added 18,000, while professional, scientific and technical services gained 17,000. Construction employment increased by 16,000. Public administration and agriculture recorded employment declines during the month.
Which provinces have the strongest job markets for immigrants?
There is no single best province for every immigrant because opportunities depend on occupation and experience. Ontario added the most jobs in July, while British Columbia, Manitoba and Nova Scotia also recorded gains. Alberta stood out over the longer term, with employment increasing 3.5 per cent compared with July 2025.
Does Canada’s unemployment rate affect immigration?
The unemployment rate does not directly determine eligibility for most Canadian immigration programs, but labour market conditions can influence immigration policy and employer demand. Canada increasingly targets workers according to occupation, sector and regional requirements through programs including Express Entry category-based selection and provincial economic immigration pathways.
What should immigrants consider when looking for jobs in Canada?
Newcomers should look beyond Canada’s national unemployment rate. Employment prospects vary significantly by province, city, industry and occupation. Candidates should research regional demand for their occupation, expected wages, licensing requirements and relevant immigration pathways before deciding where to settle or pursue employment in Canada.