Canada added 75,100 jobs in July against a forecast near 16,500, while the United States lost 23,000 against an expected gain of 83,000, both released the same Friday morning. The Bank of Canada has held its overnight rate for six consecutive decisions since October 2025, and the Federal Reserve for five, with three FOMC members dissenting in April in favor of a hike. Markets priced under a 50% chance of a Fed hike next meeting, down from roughly one in three before the report.
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Employment fell in four of the twelve months shown and averaged a gain of about 18,000 a month, so the August loss stands out within a mostly positive year.
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A year earlier the relationship ran the other way, with headline inflation sitting about a point below the CPI-trim core measure.
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The US Federal Reserve raised its policy rate on September 16, 2026, its first increase in three years, citing persistent energy and consumer price pressure.
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