Canada’s labour market strengthened in November with the addition of 54,000 jobs, pushing the national unemployment rate down to 6.5 per cent, Statistics Canada reported Friday.
The stronger-than-expected performance comes ahead of the Bank of Canada’s final interest rate decision of the year, offering policymakers one last snapshot of the economy’s momentum. Economists had widely anticipated a weaker month, with a Reuters poll predicting a loss of 5,000 jobs and an increase in unemployment to 7 per cent. Royal Bank had expected no meaningful job growth and an unemployment rate holding at 6.9 per cent.
The November numbers continue a surprising trend of labour market resilience, following two months that saw more than 120,000 jobs created across September and October. RBC economists had noted that while trade-exposed sectors were showing early signs of strain, those pressures had not yet spilled over into broader hiring patterns. A rebound in business confidence late in the year also appears to be supporting demand for workers.
With the central bank preparing to announce its final rate move next week, Friday’s report will be a key factor in assessing whether borrowing costs remain unchanged or begin shifting in response to evolving economic conditions.