Canada’s economy added far more jobs in July than expected and the unemployment rate dropped to a two-year low, data showed on Friday, in another sign the economy is coping with U.S. tariffs and international tensions.

Statistics Canada said employment had jumped by 75,100 positions on strong gains in both the full-time and part-time sectors. The jobless rate fell for the third consecutive month, dipping from 6.5 per cent to 6.4 per cent, a level last seen in July, 2024.

Analysts polled by Reuters had forecast a net gain of 16,500 positions and estimated the jobless rate would remain at 6.5 per cent.

July’s blowout follows the creation of 87,800 jobs in May.

The Bank of Canada said on July 15 that there were clear signs the economy was dealing better with the challenges posed by U.S. President Donald Trump’s tariffs and the uncertainty caused by the Middle East conflict.