Economy lost 2,800 jobs in July, unemployment rate unchanged at 6.4%

Statistics Canada says students are facing a particularly challenging summer job market, while recent immigrants are disproportionately affected by the weakening labour conditions.

The federal agency’s July labour force survey says the jobless rate held steady at 6.4 per cent last month as the economy shed a modest 2,800 jobs.

As the Bank of Canada held its key interest rate at historically high levels, the unemployment rate has climbed 0.9 percentage points over the last year.

Meanwhile, the share of returning students between the ages of 15 and 24 who were employed in July compared with a year ago tumbled 6.8 percentage points to 51.3 per cent.

Statistics Canada says that’s the lowest employment rate for returning students since July 1997, outside of July 2020 during the COVID-19 pandemic.

The slowdown in the Canadian job market has also been particularly felt by recent immigrants, as their unemployment rate has climbed 3.1 percentage points on an annual basis.

This report by The Canadian Press was first published Aug. 9, 2024.