Canada’s labour market unexpectedly contracted in July, with Statistics Canada reporting a loss of 40,800 jobs—the steepest decline since January 2022 and well below the consensus call for a 10,000 gain. The headline unemployment rate held at 6.9%, defying forecasts for a modest rise, but the participation rate slipped to 65.2% from 65.4%. Full-time positions fell by 51,000, while part-time work rose by 10,300. Wage growth for permanent employees accelerated to 3.5% year-on-year from 3.2%, a metric closely watched by the Bank of Canada for inflation signals. Youth bore the brunt of the setback: the jobless rate for Canadians aged 15–24 climbed to 14.6%, and their employment rate dropped to 53.6%, the lowest level outside the pandemic period since 1998. Market reaction was swift, with the Canadian dollar touching its session low and the 10-year government bond yield easing 2.8 basis points to 3.374%. In Europe, France’s labour market showed little change. The ILO-defined unemployment rate stood at 7.5% in the second quarter, matching expectations and edging up from a revised 7.4% in the previous quarter. Mainland unemployment ticked up to 7.3% from 7.2%, leaving joblessness marginally above the 7.1% trough reached at the end of 2024.