Canada’s labour market made notable progress in July, recovering 94,000 jobs as the economy edged closer to pre-pandemic levels, Maple News reports. The employment boost came as public health restrictions eased across much of the country thanks to lower COVID-19 case numbers and increased vaccination coverage.
According to Statistics Canada’s Labour Force Survey, the job gains were concentrated in full-time positions within the private sector, particularly in service-related industries—sectors that were among the hardest hit during the pandemic. As a result, the national unemployment rate fell to 7.5%, returning to the same level seen in March 2021.
Employment grew significantly in several provinces, including Ontario, Manitoba, Nova Scotia, and Prince Edward Island, signaling broad-based recovery across regional labour markets.
One key trend identified in the report is the continued rise in employment among very recent immigrants—defined as those who arrived in Canada within the past five years. In July, their employment rate increased to 69.1%, up one percentage point from June. While this group has seen reduced numbers since the border closure in March 2020, their employment rate has remained relatively resilient during the pandemic.
However, the rise in employment among very recent immigrants is not solely reflective of increased job opportunities; the decline in their overall population size—due to reduced immigration during COVID-19—has also contributed to this increase in employment percentage.
For immigrants living in Canada for more than five years, employment edged slightly down to 58.1%, a modest decline from the previous month, suggesting that the recovery path remains uneven across immigrant cohorts.
Prior to the pandemic, Canada’s labour force saw a surge in very recent immigrants, growing from approximately 612,000 in 2016 to 751,000 in 2019. That momentum stalled beginning in 2020, the result of international travel restrictions and reduced immigration intake.
Maple News notes that despite the challenges, the overall trajectory remains optimistic. As public health conditions continue to improve and immigration reopens, Canada’s labour market could return to full pre-pandemic strength in the coming months, creating more opportunities for both new and long-term residents.