Job growth in Canada could almost flatline and it still wouldn’t affect the national unemployment rate because of population declines, though the story differs on a province-by-province basis, says Toronto-Dominion Bank .

“Canada’s job market is entering a new phase,” Marc Ercolao, an economist at TD, said in report on July 8, two days before the June Labour Force Survey is released by Statistics Canada.

TD estimated that to hold the national unemployment rate steady — “breakeven employment growth” — the number of new jobs needed on a monthly basis is close to zero since federal immigration cuts have reduced Canada’s population over the past few quarters for the first time on record.

However, Ercolao said a national near-zero growth rate “masks” major differences from province to province.

“In some provinces, labour forces are already shrinking,” he said. “In others, migration and younger demographics continue to expand the pool of available workers.”

For example, the amount of hiring needed to hold unemployment rates steady in Ontario, British Columbia and Quebec has “sharply” fallen, with Ercolao estimating that those provinces could lose 11,000, 13,000 and 36,000 positions, respectively, without triggering a higher jobless rate.

“This marks a sharp reversal from their historical pattern of steady job growth,” he said.

He said the decline in population growth in the three provinces is the main reason for the change. He also expects the provinces’ workforces to shrink this year because of the loss of younger working-age temporary immigrants.

Meanwhile, Alberta will need to add 56,000 positions this year to keep a lid on the unemployment rate, TD said, because the province continues to record the highest rate of people moving there from other parts of Canada, while a younger population implies that the workforce will continue to grow.

“Alberta’s breakeven threshold is meaningfully higher,” Ercolao said. “That limits how far its unemployment rate can fall, even with solid hiring.”

Several other provinces, including Saskatchewan and Manitoba, are forecasted to add jobs above their breakeven points recorded prior to the pandemic.

The Prairie workforce is expected to expand nearly two per cent in 2026 and Atlantic Canada’s could grow almost one per cent compared against “national stagnation,” TD said.

Newfoundland and Labrador is expected to mirror its historical pace of job growth, recording a flat breakeven, TD said.

“As labour force growth stalls, national employment reports are becoming harder to interpret,” Ercolao said, adding that the Bank of Canada has already cautioned that labour force data needs to be interpreted with care.

Statistics Canada releases June’s job numbers on July 10 and analysts are calling for the unemployment rate to hold steady at 6.6 per cent and for the economy to add 10,000 positions.

In May, Canada added 87,800 net new positions, blowing past economist estimates.

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Initial public offerings have been one of the biggest themes in financial markets on both sides of the border so far this year, with Elon Musk’s Space Exploration Technologies Corp. completing the largest IPO in history and drugmaker Apotex Health Corp. having the biggest IPO in Canada since 2021.

The gap between the two deals is enormous, but bankers and lawyers advising Canadian dealmakers are encouraged to see IPOs returning to Canada after a prolonged slowdown between 2022 and 2024.

Overall, Canada’s financial sector raised about $376 billion through 586 deals in the first six months of 2026, up 21.5 per cent from the $309.3 billion raised in the first half of 2025, according to Financial Post Data. The strong start puts the sector on track to surpass the $597 billion recorded in 2025, the highest annual total since 2010. — Naimul Karim, Financial Post

Keep reading here.

  • Today’s Data: U.S. initial and continuing jobless claims, existing home sales.
  • Earnings: Richelieu Hardware Ltd., Velan Inc., Aritzia Inc., PepsiCo Inc.

  • Canada’s biggest banks are in a ‘sweet spot,’ but questions remain over how long it will last
  • Why Canadian millennials may be the least happy to get your wedding invitation
  • CRA penalizes new immigrants who were late reporting foreign property

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

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Today’s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.

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