Youth and immigrants bear the brunt of Canada’s July job market struggles

The private and public sectors also experienced contrasting trends. Private sector employment declined by 42,000 jobs in July, while the public sector saw an increase of 41,000 jobs, according to Financial Post.

Over the past year, the public sector added 205,000 jobs, outpacing the 86,000 jobs gained in the private sector.

Regionally, employment changes were mixed. Ontario added 22,000 jobs, driven by gains in full-time employment, while Manitoba and Nova Scotia saw declines of 5,400 and 4,800 jobs, respectively. Saskatchewan experienced a modest gain of 6,700 jobs.

Wage growth remained robust, with average hourly wages rising by 5.2 percent on a year-over-year basis, reaching $34.97. Despite this, the labour force participation rate fell to 65.0 percent, the lowest since June 1998, excluding the pandemic years.

The Bank of Canada has expressed concern about the weakening labour market, which could hinder economic growth. The central bank’s governor, Tiff Macklem, cited deteriorating job market conditions as a factor in the recent decision to cut interest rates.