Ottawa's unemployment rate continues to fall this summer, as the capital and the country face a labour shortage.

Statistics Canada says Ottawa's unemployment rate dropped to 3.5 per cent in July from 3.9 per cent in June.

The number of people working in the capital dropped by 5,000 people in July, but fewer people were looking for work.

The Canadian economy lost 31,000 jobs in July, but the unemployment rate stayed at a historic low of 4.9 per cent.

The number of public sector employees across the country fell in July, according to Statistics Canada.

The 3.5 per cent unemployment rate in Ottawa is the lowest in more than 20 years. According to the Statistics Canada website, the unemployment rate of 3.5 per cent is the lowest since March 2001 – the earliest date statistics are available.  

Ottawa has the lowest unemployment rate of Canada's biggest cities:

  • Calgary 5.0 per cent
  • Edmonton 5.1 per cent
  • Hamilton 4.3 per cent
  • Montreal 4.8 per cent
  • Toronto 5.9 per cent
  • Vancouver 4.7 per cent
  • Winnipeg 4.2 per cent  

Gatineau's unemployment rate increased in July to 3.5 per cent from 2.8 per cent in June.

With files from the Canadian Press