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Canada's unemployment rate fell for the third consecutive month in July 2026, dropping 0.1 percentage points to 6.4 percent.
According to Statistics Canada’s latest Labour Force Survey, this is the lowest the unemployment rate has been since July 2024. If you’re a newcomer looking for your first job in Canada, this data points to a slow but steady improvement in the job market.
Employment rose by 75,000 jobs, or 0.4 percent, with increases in both full-time and part-time work. Since April, the economy has added 181,000 jobs, most of it in full-time positions. The employment rate, which measures the percentage of the population aged 15 and above who are employed, increased by 0.1 percentage points to 60.9 percent in July.
Key Takeaways
Unemployment rate: 6.4 percent, down from 6.5 percent in June 2026
Employment: Up 75,000 (+0.4 percent) in July, and up 181,000 (+0.9 percent) since April
Wages: Average hourly wages up 2.8 percent year-over-year to $37.17
Industries seeing gains: Wholesale and retail trade, finance and insurance, professional and technical services, construction
Industries seeing losses: Public administration and agriculture
Top provincial gains in employment: Ontario, British Columbia, Manitoba, Nova Scotia
Regional Insights from the July 2026 Labour Force Survey
Ontario led the country in job growth for the third time in four months, adding 52,000 jobs in July. In all, the province has added 119,000 jobs since April. The unemployment rate in Ontario fell 0.2 percentage points to 6.8 percent, its lowest level since July 2024.
British Columbia added 18,000 jobs in July, continuing a trend that started in May. Its unemployment rate fell by 0.2 percentage points to 6.2 percent.
Manitoba saw its first employment increase since March, adding 5,900 jobs. The unemployment rate there dropped 0.4 percentage points to 5.0 percent, matching where it stood in April.
Nova Scotia added 4,600 jobs in July, its second straight monthly gain. Year over year, employment in the province is up 12,000. The unemployment rate stayed steady at 6.2 percent, but is down 0.7 percentage points compared to last July.
Quebec’s employment was little changed in July, and its unemployment rate stayed at 5.6 percent. Alberta’s employment also held steady in the month. Year-on-year, the province is up 91,000 jobs, or 3.5 percent. Alberta’s unemployment rate stayed at 7.0 percent, down 0.9 percentage points from July 2025.
Provincial Unemployment Rates Across Canada in July 2026
Here are the provincial unemployment rates from Statistics Canada’s July 2026 Labour Force Survey:
Alberta: 7.0 percent
British Columbia: 6.2 percent
Manitoba: 5.0 percent
New Brunswick: 7.0 percent
Newfoundland and Labrador: 9.3 percent
Nova Scotia: 6.2 percent
Ontario: 6.8 percent
Prince Edward Island: 6.8 percent
Quebec: 5.6 percent
Saskatchewan: 6.0 percent
Changes in Provincial Unemployment from June to July 2026
Employment Changes by Demographic Group
Employment among core-aged people (25 to 54 years old) rose by 51,000 in July, mostly driven by women in that age group, who saw employment increase by 33,000. The unemployment rate for core-aged women fell 0.3 percentage points to 5.2 percent. For core-aged men, the unemployment rate held steady at 5.8 percent.
The youth unemployment rate (15 to 24 years old) declined 0.1 percentage points to 12.6 percent. That’s down from a recent peak of 14.3 percent in April, and 1.9 percentage points lower than a year earlier. Even so, the rate remains well above the pre-pandemic average of 10.8 percent.
For workers aged 55 and older, the unemployment rate held steady at 5.2 percent, with little change compared to a year earlier.
CMA Insights
Where you plan to settle in Canada can have a real effect on your job search. In Toronto, the unemployment rate remained almost the same at 6.7 percent in July, but that’s down from 9.0 percent in July 2025.
Montreal’s unemployment rate rose 0.7 percentage points to 6.6 percent in July. In Vancouver, the unemployment rate fell 0.6 percentage points to 6.0 percent.
Job Finding Rate Is Improving
The job finding rate measures the share of unemployed people who moved into a job over the month. In July, that figure was 20.8 percent, over 2 percentage points higher than July last year. That said, the job finding rate is still well below the pre-pandemic average of 26.6 percent from 2017 to 2019.
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Expert resources to help immigrants get jobs in Canada
Canada’s job market provides a wealth of opportunity for newcomers, but it is only that — an opportunity.
To take full advantage, recent and prospective immigrants can leverage free government-funded resources and programs. We recently partnered with Canada InfoNet, a government-funded pre-arrival employment support program, to bring you two expert guides on transitioning to a career in Canada:
The outlook on Canadian construction and infrastructure
Ruairi Spillaine, Outpost Recruitment and Moving2Canada founder, analyzes what’s happening in the construction sector in Canada.
“Canada’s construction sector continues to provide opportunities to experienced candidates who can differentiate themselves in a tighter employment market. While commercial and residential sectors are slower, institutional buildings and a buoyant infrastructure sector continue to drive employment opportunities from coast to coast. Meanwhile, Canada’s industrial sector including nuclear, mining and renewables is set for a strong 2026.“
Moving2Canada and Outpost Recruitment Founder, Ruairi Spillane
If you are interested in working in Canada’s construction sector, Outpost helps motivated candidates find suitable jobs in Canada.
The agency works with general contractors, subcontractors, developers, and consultants who are hiring across senior management, operations, project management, site, design, quality, and commercial personnel.
Outpost Recruitment is actively looking for candidates for projects across Canada. View the latest job postings here.
How to get a job in Canada
If you’re looking for a job in Canada here are some steps you can take to land that sweet, sweet Canadian job offer.
Get your resume in good shape. This crucial step is often left down the list of job seekers’ priorities, despite being arguably the most important step of all. Read our Canadian resume guide to get going.
Build your network. You can assemble a team to help you in your job search. With ongoing physical distancing and travel restrictions, technology is your friend here. Read our networking guide, written by award-winning entrepreneur Ruairi Spillane, for expert advice.
Here’s a popular webinar from recruitment expert and Moving2Canada founder, Ruairi Spillane, about how to create the best resume for the Canadian jobs market:
New and improved Jobs Board
We have worked hard over recent weeks to ramp up the number and range of job postings on our Jobs Board.
We also have a number of other resources for helping you find your career in Canada. You’ll find broad-stroke information that will arm you with the knowledge you need to succeed, as well as industry-specific insights into finding jobs by industry, such as teaching.
We have helped thousands of workers worldwide navigate the job search, immigration and settlement process in Canada.
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Stephanie is a content creator who writes on legal and personal finance topics, specializing in immigration and legal topics. She earned a Bachelor of Laws and a Diploma in Financial Planning in Australia. Stephanie is now a permanent resident of Canada and a full-time writer at Moving2Canada.
Citation
Ford, Stephanie. "Canada’s Unemployment Rate Hits Two-Year Low of 6.4% in July 2026."Moving2Canada.Last modified August 10, 2026.https://moving2canada.com/work/finding-jobs/labour-market-report/.
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