OTTAWA - Canada’s economy experienced a significant setback in July, losing 41,000 jobs, according to Statistics Canada. This decline marks the largest monthly drop since January 2022. Despite the job losses, the unemployment rate remained unchanged at 6.9 percent, as the number of job seekers did not fluctuate significantly.

The job losses were primarily concentrated in full-time positions and the private sector. The information, culture, and recreation sector saw the most substantial declines, followed by construction. Other sectors, including health care, social assistance, agriculture, and public administration, also reported job losses. However, the manufacturing sector experienced modest gains for the second consecutive month, despite being down 39,000 jobs since January.

The youth unemployment rate rose to 14.6 percent in July, the highest level since 2010. Young people aged 15 to 24 faced particularly challenging job prospects, with the jobless rate among returning students reaching 17.5 percent, the highest for July since 2009. Overall, 1.6 million Canadians are currently unemployed, with 23.8 percent having been job hunting for 27 weeks or longer.

On a provincial level, Alberta's unemployment rate increased by one percentage point to 7.8 percent, while British Columbia's rate rose to 5.9 percent. In contrast, Saskatchewan saw an increase in employment, and other provinces reported little change.

Despite the job losses, the layoff rate remained stable at 1.1 percent in July, compared to 1.2 percent a year earlier. Average hourly wages increased by 3.3 percent year-over-year, and total hours worked showed little variation from June. The overall employment landscape indicates a lack of net growth since January, highlighting ongoing challenges in the job market.