Canadian Economy Gains 8,200 Jobs in December as Unemployment Rises to 6.8%

Bassyonni

ago 12 hours

Canadian Economy Gains 8,200 Jobs in December as Unemployment Rises to 6.8%

Canada’s job market saw the addition of 8,200 jobs in December 2025, according to Statistics Canada. However, with an increase in workforce participation, the unemployment rate rose to 6.8%, up from 6.5% in November.

Job Market Overview

Full-time employment experienced a notable increase, rising by 50,200 positions. In contrast, part-time jobs fell by 42,000. Analysts had predicted a net loss of around 5,000 jobs for December, with an expected unemployment rate of 6.6%.

Recent Job Growth Trends

The December statistics followed three months of strong job creation, with a total of 181,000 jobs added from September to November. This surge counteracted a stagnation in hiring during the first eight months of 2025, attributed to U.S. tariffs and trade uncertainties.

Sector-Specific Insights

Health Care and Social Assistance: Increased by 21,000 jobs.
Professional, Scientific, and Technical Services: Decreased by 18,000 jobs, marking the first decline since August.
Manufacturing Sector: Added 4,300 jobs, showing resilience amidst trade pressures.

Youth Employment Challenges

Despite the overall job growth, young Canadians faced significant challenges. The youth unemployment rate for those aged 15 to 24 rose by half a percentage point to 13.3%. This figure, however, was down from a worrying 14.7% recorded in September 2025—a peak not seen in 15 years, excluding the COVID-19 pandemic period.

Wage Growth and Economic Outlook

Average hourly wages increased by 3.4% year-over-year in December, slightly down from 3.6% in November. Douglas Porter, BMO’s chief economist, commented that the latest job figures reflect a more stable reality. He suggested that the moderate growth may not influence the Bank of Canada’s upcoming interest rate decisions.

This report provides crucial insights into the Canadian economy as the Bank of Canada prepares for its first interest rate decision of the year. The job market’s mixed signals suggest both challenges and opportunities ahead.