CIBC Research reviews today's Canadian jobs report for the month of July.

"Brisk hiring in July saw the unemployment rate tick lower again, despite a slight improvement in labour force participation. The 75K increase in employment was well above consensus forecasts (20K), with the unemployment rate of 6.4% the lowest in 2 years. Job growth was pretty evenly split between full and part time roles, and by sector was led by wholesale & retail, finance, professional services and construction. The unemployment rate edged down further for core aged (25-54) and young workers (aged 15-24), with this summer's student job market stronger than those see in the prior two years. That appears to have led to an upturn in participation for young people as well, which had been very low at the start of the year. Wage growth for permanent employees eased a little more than expected to 3.0%, from 3.7%," CIBC notes.

"Overall, this is clearly a strong report, although at 6.4% the unemployment rate is still higher than where we see full employment, and not yet at a level that will fuel domestically-driven inflation. As a result we continue to see the Bank of Canada remaining on hold this year and into the start of 2027," CIBC adds.