Canada Posts Strong Job Growth in December, Surpassing Expectations
Canada’s labour market ended 2024 on a high note, adding 91,000 jobs in December and exceeding economists’ forecasts. According to Statistics Canada’s labour force survey released Friday, the unemployment rate dipped 0.1 percentage points to 6.7%, further bolstering the country’s economic recovery.
Sector Highlights and Employment Trends
The largest employment gains were observed in the education, transportation, and finance sectors, with the public sector leading the way by adding 40,000 jobs.
- Full-Time Employment: Increased by 56,000 positions.
- Private Sector: Showed little change, with a modest increase of 27,000 jobs.
- Self-Employment: Rose for the first time since February 2024, adding 24,000 jobs.
Despite this rebound, self-employment remains a challenge, still down 100,000 jobs compared to February 2020.
December marked the first increase in Canada’s employment rate since January 2023, though Statistics Canada noted this growth against the backdrop of slowing population growth.
Over the course of 2024, self-employment saw gains of 64,000 jobs, but it continues to lag behind pre-pandemic levels, reflecting persistent structural shifts in the labour market.
With public and private sector jobs demonstrating sustained growth, the recent uptick in self-employment offers a glimmer of hope for those sectors most affected by the pandemic. However, bridging the gap to pre-2020 self-employment levels remains a critical challenge as Canada navigates its path to a fully recovered and resilient labour market.