The Canadian economy shed 40,800 jobs in July, with the employment rate reaching 60.7%, the lowest level in eight months.

In July, Canada recorded a significant job loss, with 40,800 fewer jobs after a gain of 83,000 in the previous month, bringing the employment rate to 60.7%. The unemployment rate held steady at 6.9%. Analysts had expected an increase in jobs, and manufacturing was hit hard by US tariffs. Young people aged 15 to 24 were hardest hit, with an unemployment rate of 14.6%. The Bank of Canada may cut policy interest if inflation remains under control.