Ottawa (Rajeev Sharma): Canada’s labour market added a modest 8,200 jobs in December, according to Statistics Canada, while the national unemployment rate rose to 6.8 per cent, up from 6.5 per cent in November. The increase in the jobless rate reflects more Canadians entering the labour force, a sign of growing confidence among job seekers.
The December figures follow three months of robust hiring, with the economy adding 181,000 positions from September through November. Earlier in 2025, job growth had stalled due to trade uncertainties and U.S. tariffs.
RBC assistant chief economist Nathan Janzen described the higher participation rate as “encouraging,” noting that more people looking for work can temporarily push the unemployment rate higher but also indicates optimism in the labour market.
Full-time employment drove December’s gains, rising by 50,200, while part-time work fell by 42,000. Sector-wise, health care and social assistance added 21,000 jobs, and manufacturing grew by 4,300 positions. However, professional, scientific, and technical services saw a decline of about 18,000 jobs—the first drop in that sector since August.
Older Canadians fared better in the job market, whereas youth unemployment (ages 15 to 24) ticked up to 13.3 per cent, reflecting ongoing challenges for younger workers despite a decline from September’s 14.7 per cent—the highest outside the COVID-19 pandemic.
Average hourly wages rose 3.4 per cent year-over-year, slightly down from 3.6 per cent in November. Analysts surveyed by Reuters had predicted a net loss of 5,000 jobs and expected the unemployment rate to reach 6.6 per cent.
BMO chief economist Douglas Porter described December’s report as “bringing job gains back to a more realistic place” after the unusually large swings earlier in the year. He also noted that the figures are unlikely to influence the Bank of Canada’s interest rate decisions, with the central bank expected to hold rates steady at 2.25 per cent in its first meeting of 2026.
The December report offers a snapshot of a labour market gradually stabilizing after a turbulent 2025, signaling cautious optimism as Canada enters the new year.
