Canada’s labour market closed December on a mixed note, signalling resilience in job creation but growing pressure from a rising number of people actively seeking work. Statistics Canada data released on Friday showed the economy added a net 8,200 jobs in December, with all gains coming from full-time employment, even as the unemployment rate climbed to 6.8%.The increase in the jobless rate, up from 6.5% in November, was driven largely by higher labour force participation, which rose to 65.4% as more Canadians entered or re-entered the job market.
The total labour force expanded to 22.69 million in December, reflecting renewed job search activity despite modest headline employment growth.
From a workforce composition perspective, December marked a sharp shift towards stable employment. Full-time jobs rose by 50,200, while part-time employment declined by 42,000. This contrasts with November’s stronger overall job growth of 53,600, which was largely fuelled by part-time hiring.
The December figures suggest employers are prioritising permanent roles, even as overall hiring momentum slows.Sector-wise, employment gains were concentrated in goods-producing industries, which added a net 8,000 jobs, driven mainly by construction. Services employment was broadly flat, with a marginal increase of 100 jobs, supported by hiring in health care, social assistance and other personal services. The limited growth in services highlights uneven demand across sectors, particularly in consumer-facing roles.
Wage growth remained steady, offering some relief to workers amid cost-of-living pressures. Average hourly wages for permanent employees rose 3.7% year-on-year to C$38.02 in December, up from C$36.68 a year earlier. However, wage growth did not accelerate further, suggesting employers remain cautious on compensation.Overall, the December data points to a labour market that is stabilising rather than expanding, with stronger full-time job creation offset by rising unemployment as labour supply grows. Notably, the outcome was slightly stronger than market expectations, with analysts surveyed by Reuters having forecast a net job loss of 5,000 and an unemployment rate of 6.6%. For employers and policymakers, the figures underscore the need to balance workforce demand with a growing pool of active job seekers heading into 2026.