Canadian economy added 8,200 jobs in December, while unemployment rose to 6.8%
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Canada created only 8,200 new jobs in December, Statistics Canada said Friday, while the unemployment rate rose as more people looked for work.
The unemployment rate reached 6.8 percent in December, which was 6.5 percent in November.
Full-time employment increased by 50,200 in December, while part-time employment declined by 42,000.
Analysts polled by Reuters had expected a net loss of 5,000 positions and the unemployment rate to rise to 6.6 percent.
The December results come after three months of huge growth in employment. The economy added a total of 181,000 new jobs from September to November, compared with almost no change in the first eight months of 2025, when US tariffs and trade uncertainty held back hiring.
Employment in health care and social assistance increased by 21,000 in December, while the professional, scientific and technical services sector declined by about 18,000 positions, the first decrease since August. The trade-sensitive manufacturing sector added 4,300 jobs in December.
Job gains were larger for those aged 55 and older, but the job market remained tough for younger Canadians, as youth unemployment for those aged 15 to 24 increased by half a percentage point to 13.3. The figure was down from 14.7 percent recorded in September, which was the highest level in 15 years outside the COVID-19 pandemic.
Average hourly wages rose 3.4 percent year-over-year in December, down from 3.6 percent in November.
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Statistics Canada said the labor market faced headwinds from U.S. tariffs until 2025, but conditions improved for job seekers by the end of the year.
BMO chief economist Douglas Porter said the December data brought job gains back to a more “realistic position.”
“After massive swings (mostly on the strong side of the ledger) over the past six months, today’s ho-hum report puts a better grip on reality,” Porter said in a note.
He said the moderate figures would not be of much interest to the Bank of Canada when deciding on any interest rate changes and backed up his prediction that the bank would keep rates unchanged.
Friday’s jobs report marks the Bank of Canada’s last look at the state of the labor market before its first interest rate decision of the year later this month.
