Canada adds 75,000 jobs, unemployment falls to 6.4%

Canada added 75,000 jobs in July and its unemployment rate fell to 6.4 percent, Statistics Canada data showed Friday, as the economy faces U.S. tariffs.

Statistics Canada said hiring was split between full-time and part-time work and was spread across industries, including finance and construction. The 6.4 percent unemployment rate was Canada's lowest in two years.

The Canadian figures contrasted with the United States, which reported a July job loss of 23,000 on Friday.

TD Bank said in a note that “the labour market is showing clear signs of recovery” and predicted unemployment would continue to edge down through the rest of the year. It also warned that downside risks remained, citing President Donald Trump's threat to impose 50 percent tariffs on select Canadian goods on August 19.

Prime Minister Mark Carney said this week that his government was working with Washington to avert those levies while seeking a deal on a revised North American free trade agreement.

Trump signed and praised the USMCA during his first term, but now says it does not serve U.S. interests and wants it overhauled. RBC said the USMCA “continues to backstop” Canadian exports to the United States, while warning that a broad collapse in bilateral free trade would upend Canada's economy.