Average hourly wages for permanent employees in Canada decelerated in July 2026, easing to an annual growth rate of 3.0%, down from 3.7% in June 2026. The latest figures, updated on 7 August 2026, indicate a moderation in wage pressures after a stronger pace earlier in the summer.
The slowdown from June’s 3.7% to July’s 3.0% suggests that upward pressure on labor costs may be easing, a development that could be closely watched by policymakers and markets assessing the balance between wage growth and inflation. While wages are still rising on a year-over-year basis, the softer July reading may signal a cooling labor market or a gradual normalization in pay gains for permanent employees across the country.
