In July 2024, Canada’s employment landscape displayed signs of stability, with minor fluctuations observed across various sectors and demographic groups. The latest data from Statistics Canada reveals the overall employment figure remained virtually unchanged, dipping by a marginal 2,800 jobs. This slight decrease left the unemployment rate steady at 6.4%, reflecting a complex picture of the country’s labor market. Notably, the employment rate fell by 0.2 percentage points, settling at 60.9%, continuing a downward trend that has persisted over recent months.
A closer examination of demographic groups reveals varying trends. Employment among young men aged 15 to 24 saw a significant decline, with 20,000 fewer jobs, translating to a 1.5% drop. This group has faced consistent challenges, with their employment rate falling 5.5 percentage points to 52.4% year-over-year. On the other hand, employment among core-aged men (25 to 54 years) increased by 48,000 jobs, reflecting a 0.7% rise. This growth partly counterbalanced declines observed in the preceding months, although the year-over-year employment rate for this group still saw a reduction.
For older workers aged 55 to 64, the picture was mixed. Women in this age group experienced a notable drop in employment by 41,000 jobs, or 2.6%, while men saw a smaller decline of 15,000 jobs, or 0.8%. These shifts contributed to a decrease in the employment rate for older women over the past year, highlighting ongoing challenges for this demographic.
Sectoral shifts in employment were also apparent in July. The wholesale and retail trade sector experienced a sharp decline, shedding 44,000 jobs, a 1.5% reduction, continuing a downward trend that has been evident since August 2023. Similarly, the finance, insurance, real estate, rental, and leasing sector saw a loss of 15,000 jobs, marking its first decline since November 2023.
Conversely, public administration emerged as a growth sector, adding 20,000 jobs in July, a 1.6% increase, following a decline in June. Transportation and warehousing also showed resilience, with employment rising by 15,000 jobs, a 1.4% increase, which partially offset previous declines in May and June.
The labor market challenges were particularly pronounced for returning students aged 15 to 24. The employment rate for this group fell to 51.3% in July, a significant drop of 6.8 percentage points from the same month in 2023. This decline marked the lowest rate for July since 1997, excluding the anomaly of July 2020 during the COVID-19 pandemic. The unemployment rate for returning students also surged to 17.2%, the highest July figure since 2009, suggesting a challenging summer job market for young Canadians.
July saw contrasting trends in private and public sector employment. The private sector lost 42,000 jobs, a 0.3% decrease, following two months of relative stability. Despite this, private sector employment has grown modestly over the past year, with an increase of 86,000 jobs, or 0.6%. In contrast, public sector employment expanded significantly, adding 41,000 jobs in July, a 0.9% increase. Year-over-year, public sector employment grew by 205,000 jobs, or 4.8%, driven largely by gains in health care, social assistance, public administration, and educational services.
The unemployment rate for recent immigrants (those who have been in Canada for less than five years) rose sharply in July, reaching 12.6%, a 3.1 percentage point increase from the previous year. This trend was particularly pronounced among recent immigrant youth, with their unemployment rate surging to 22.8%, an 8.6 percentage point increase from July 2023. The challenges faced by recent immigrants in integrating into the Canadian labor market, such as recognition of foreign credentials and gaining local work experience, continue to be significant barriers.
The labor force participation rate also experienced a decline in July, falling by 0.3 percentage points to 65.0%, the lowest rate since June 1998, excluding the pandemic years. This decline was driven primarily by reductions in participation among young men, young women, and core-aged women, highlighting the ongoing challenges in the Canadian labor market.