Statistics Canada reported an increase in job seekers in December, leading to a rise in the unemployment rate to 6.8%. Canada added 8,200 new jobs during the month, with a significant focus on full-time positions which saw an increase of 50,200 jobs while part-time roles decreased by 42,000.
The boost in employment was more prominent in the health care and social assistance sector, adding 21,000 jobs, while the professional, scientific, and technical services industry experienced a decline of around 18,000 positions. The manufacturing sector, sensitive to trade, saw an addition of 4,300 jobs in December.
Job market improvements were observed for individuals aged 55 and above, whereas youth unemployment for those between 15 and 24 years old rose to 13.3%. Average hourly wages saw a year-over-year increase of 3.4% in December.
Analysts had anticipated a net loss of 5,000 jobs, with the unemployment rate expected to reach 6.6%. Despite the fluctuations, the December figures were deemed more realistic by Douglas Porter, BMO’s chief economist, signaling a stabilization in job gains.
The labor market faced challenges from U.S. tariffs in 2025, but conditions improved towards the end of the year, reflecting a positive trend for job seekers. The Bank of Canada is likely to maintain its current interest rates based on the latest job market data.