Canada lost about 41,000 jobs in July 2025 and the employment rate edged down to 60.7%, according to Statistics Canada. The unemployment rate held at 6.9%, while analysts pointed to U.S. tariffs as a pressure on trade-exposed industries.
Canada loses about 41,000 jobs in July as employment rate dips to 60.7%
Canadian employment fell by about 41,000 jobs in July, reversing part of June’s gain, according to Statistics Canada’s Labour Force Survey. The employment rate, the share of the working-age population with a job, slipped to 60.7%. The unemployment rate was unchanged at 6.9%.
The employment rate can fall even when unemployment holds steady, because the population can grow faster than the number of jobs.
Where the losses were
Statistics Canada reported declines in information, culture and recreation, in construction, and in business, building and other support services. Transportation and warehousing added jobs. Employment among young people aged 15 to 24 also fell during the month.
The role of U.S. tariffs
Economists have warned that U.S. tariffs on Canadian goods, including steel, aluminum and autos, are weighing on export-focused industries. Trade-exposed manufacturers have reported softer orders and uncertainty about future demand, and some companies have looked for other markets or adjusted their supply chains.
What it means for interest rates
Weaker labour data is one of the factors the Bank of Canada weighs when setting interest rates, along with inflation and economic growth figures. Analysts will watch upcoming inflation, retail sales and job vacancy reports to judge whether July’s decline is a one-month dip or the start of a trend.
What to watch next
Statistics Canada’s next monthly labour report, along with trade data and any new tariff announcements between Ottawa and Washington, will help show how the job market is responding.
Source: Statistics Canada
