Canada’s labour market ended 2025 with modest job growth, adding 8,200 positions in December, even as the national unemployment rate rose to 6.8 per cent amid a larger number of people actively seeking work.
Gains were driven by full-time employment, which increased by 50,200 jobs, while part-time employment declined by 42,000. Economists surveyed by Reuters had anticipated a net loss of 5,000 jobs and expected the unemployment rate to inch up to 6.6 per cent.
December’s figures follow three months of strong hiring momentum. From September through November, the economy added a combined 181,000 jobs, a sharp contrast to the near-stagnation seen during the first eight months of 2025, when U.S. tariffs and ongoing trade uncertainty weighed heavily on hiring.
Sectorally, health care and social assistance led gains in December, adding 20,800 jobs. In contrast, professional, scientific and technical services shed 18,100 positions, marking the sector’s first decline since August.
Employment growth was strongest among Canadians aged 55 and older. Conditions remained more challenging for younger workers, although unemployment among those aged 15 to 24 edged down by one percentage point.
Wage growth continued to cool. Average hourly earnings for permanent employees — a key inflation indicator watched closely by the Bank of Canada — rose 3.7 per cent year over year, down from 4.0 per cent in November.
The central bank held its benchmark interest rate at 2.25 per cent on December 10, signaling that the level remains appropriate to keep inflation near its two per cent target. Financial markets largely expect rates to remain unchanged through the rest of the year.
Canada adds 8,200 jobs in December as unemployment climbs to 6.8%
