Canada: Gradual improvement with tariff risks – RBC
Royal Bank of Canada’s (RBC) Nathan Janzen reports that Canada’s labour market strengthened in July, with a 75k employment gain following robust increases in May and June and a decline in the unemployment rate to 6.4%.
Royal Bank of Canada (RBC) analyst Nathan Janzen has reported a gradual improvement in Canada's labour market, despite potential risks from U.S. tariffs. In July, the country witnessed a 75,000 increase in employment, following strong gains in May and June, and a drop in the unemployment rate to 6.4%, the lowest in two years. This improvement, however, comes with a backdrop of slowing population growth, higher retirements, and easing energy prices.
While average monthly job growth for 2026 so far is modest at 10,000, Janzen anticipates the unemployment rate to continue falling throughout the second half of the year, given the ongoing uncertainty surrounding U.S. tariffs.
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