Last Friday, Statistics Canada released Canadian labour market data for June. The report was largely positive, showing the Canadian economy added jobs, with the unemployment rate edging lower. Labour market conditions in Canada were relatively soft over 2026 amid ongoing trade disruptions and heightening geopolitical tensions. However, the last two months saw a pick-up in jobs, which may be pointing to a stabilizing market. Here’s more from June’s labour market report.

• The Canadian economy added 18,200 jobs in June, building on the 87,800 job gains in the previous month. June’s job additions also topped the 10,000 economists had expected, based on a Bloomberg survey.
• Most of the job gains came from the part-time sector, particularly among youth workers in retail trade and food and accommodation industries. After adding jobs in May, the manufacturing sector lost 17,000 jobs in June.
• Canada’s unemployment rate dropped to 6.5% in June from 6.6% in May, its lowest level since January 2026.
• The hourly wage rate for permanent employees rose by 3.7% year over year in June, up from May. Wage growth has picked up in 2026 since the end of 2025.
• Yesterday, data from Bloomberg Nanos showed Canadian consumer confidence picked up over the week ended July 10. The survey showed confidence in job security rose over the week.

The Canadian labour market appears to have stabilized, but several risks persist that could derail progress over the last couple of months. In particular, trade tensions could continue to weigh on labour market activity in sectors directly impacted by tariffs. Still, the latest results of the labour market report reinforced expectations the Bank of Canada will hold interest rates steady at its July meeting, which takes place this Wednesday.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.