Payroll employment in Canada increased by 21,600 (+0.1 per cent) in July, offsetting a decline of 9,100 (-0.1 per cent) in June, according to new data released by Statistics Canada.
Despite the monthly gain, overall payroll employment has seen little net change since the start of 2025. Compared with January, the number of employees receiving pay and benefits was down slightly by 15,500 (-0.1 per cent) in July.
The largest monthly payroll gains were recorded in health care and social assistance (+14,900; +0.6 per cent), finance and insurance (+8,700; +1.0 per cent), and accommodation and food services (+2,600; +0.2 per cent). These increases were partially offset by declines in manufacturing (-4,600; -0.3 per cent) and construction (-2,200; -0.2 per cent).
Health care and finance lead payroll growth
In the health care and social assistance sector, July’s payroll employment increase was broad-based, with gains in 13 of 18 industries. The largest increases were in general medical and surgical hospitals (+4,800; +0.7 per cent), child day-care services (+2,200; +1.1 per cent), and individual and family services (+1,400; +0.7 per cent).
Payroll employment in this sector has grown steadily since September 2022, with an overall increase of 248,100 (+11.2 per cent).
Finance and insurance also saw a rebound in July, gaining 8,700 positions (+1.0 per cent) after a decline in June. Most of the increase was due to credit intermediation and related activities (+5,000; +1.2 per cent), as well as insurance carriers and related activities (+3,000; +1.1 per cent).
On a year-over-year basis, payroll employment in finance and insurance rose by 9,100 (+1.1 per cent).
Earnings edge higher in July
Average weekly earnings rose 3.3 per cent year over year to $1,307.86 in July, following a 3.6 per cent annual increase in June. Month over month, average weekly earnings were up 0.6 per cent.
Statistics Canada noted that changes in average weekly earnings can reflect “a range of factors, including changes in wages, composition of employment, hours worked and base-year effects.”
Average weekly hours worked were little changed at 33.3 hours in July, but declined 0.6 per cent compared with July 2024.
Job vacancies decline
Job vacancies fell by 20,600 (-4.2 per cent) to 469,900 in July. Compared with a year earlier, vacancies were down 79,400 (-14.5 per cent).
The job vacancy rate decreased to 2.6 per cent in July, down from 2.7 per cent in June and from 3.1 per cent in July 2024.
“There were 3.3 unemployed persons for every job vacancy in July 2025, up from 3.2 in June,” said Statistics Canada. “This was the highest unemployment-to-job vacancy ratio since January 2017 (excluding 2020 and 2021 during the COVID-19 pandemic).”
The increase in the ratio was driven by both fewer job vacancies (-78,600; -14.4 per cent) and more unemployed persons (+134,900; +9.5 per cent) compared with a year earlier.
Sectoral and provincial vacancy trends
In July, job vacancies declined in three sectors: construction (-5,600; -14.3 per cent), finance and insurance (-4,100; -19.4 per cent), and agriculture, forestry, fishing and hunting (-1,700; -24.4 per cent).
On a year-over-year basis, 10 out of 20 sectors recorded declines. The largest annual decreases were seen in health care and social assistance (-32,800; -26.1 per cent), construction (-11,200; -24.9 per cent), and retail trade (-7,800; -14.8 per cent).
Among sectors, the highest job vacancy rates in July were reported in other services (4.1 per cent), accommodation and food services (3.8 per cent), and health care and social assistance (3.7 per cent). The lowest vacancy rates were found in educational services (1.1 per cent), utilities (1.3 per cent), and management of companies and enterprises (1.4 per cent).
Provincially, job vacancies declined in Alberta (-6,100; -8.9 per cent), Quebec (-5,300; -4.9 per cent), and Newfoundland and Labrador (-1,300; -26.9 per cent). Other provinces saw little change.
The job vacancy rate was highest in Nova Scotia (3.2 per cent), British Columbia (3.0 per cent), and Alberta (2.9 per cent), while the lowest rates were recorded in Newfoundland and Labrador (1.6 per cent), Ontario (2.4 per cent), and Quebec (2.6 per cent).
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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