August 8, 2025
RED FM News Desk
Statistics Canada announced Friday that the Canadian economy lost approximately 41,000 jobs in July, with the biggest impact felt by young workers and the private sector.
Despite the job losses, the unemployment rate remained stable at 6.9%, as the number of job seekers was largely unchanged from June. The agency noted that the economy lost 51,000 full-time positions, with the majority of these cuts coming from the private sector.
The decline in July jobs partially offset an unexpected gain of 83,000 positions in June.
Job losses were widespread across several sectors, led by the information, culture and recreation sector, which shed 29,000 positions, followed by construction, which lost 22,000 roles.
However, these losses were partially balanced by a gain of 26,000 jobs in transportation and warehousing, marking the sector’s first job increase since January. This industry has been affected by U.S. demand for exports and trade disruptions from U.S. tariffs.
StatCan reported that the layoff rate was virtually unchanged from the same month last year at 1.1%, despite ongoing uncertainty with trade and U.S. tariffs. The agency also highlighted that many job seekers are struggling to find work. Of the 1.6 million people who were unemployed in July, 23.8% were in long-term unemployment, meaning they had been looking for a job for 27 weeks or more. This is the highest share of long-term unemployment since February 1998, excluding the pandemic.
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