Statistics Canada reported an increase in job seekers in December, leading to a rise in the unemployment rate. Canada added 8,200 new jobs last month, causing the unemployment rate to climb to 6.8 percent, up from 6.5 percent in November.
After three months of significant job growth, with a total of 181,000 new jobs added from September to November, December’s results showed a shift. RBC’s assistant chief economist, Nathan Janzen, highlighted the positive trend of more people entering the labor force.
The increase in job seekers potentially signals improved confidence among Canadians in finding work. Full-time employment saw a gain of 50,200 jobs in December, while part-time positions decreased by 42,000.
Notable job gains were seen in the health care and social assistance sector, adding 21,000 jobs, while the professional, scientific, and technical services industry experienced a decrease of around 18,000 positions, marking the first decline since August. The manufacturing sector, sensitive to trade dynamics, added 4,300 jobs in December.
Although job gains were more noticeable for those aged 55 and above, youth unemployment for individuals between 15 and 24 years old rose to 13.3 percent. Average hourly wages increased by 3.4 percent year-over-year in December, slightly lower than the previous month.
Analysts had anticipated a net loss of 5,000 jobs and a slight uptick in the unemployment rate to 6.6 percent. The labor market faced challenges from U.S. tariffs earlier in the year but showed improvements towards the end of 2025.
BMO’s chief economist, Douglas Porter, viewed the December figures as a return to a more realistic pace of job gains. He suggested that the stable numbers were unlikely to impact the Bank of Canada’s interest rate decisions, supporting the expectation of rate stability.
The recent jobs report provides insight for the Bank of Canada’s upcoming interest-rate decision, with the central bank maintaining its policy rate at 2.25 percent in the last decision of the year.