Canada’s unemployment rate climbed to 6.8 per cent in December as more people entered the labour force, offsetting modest job gains at the end of the year, Statistics Canada reported Friday.
The agency said the economy added 8,200 jobs in December, surpassing economists’ expectations. However, the increase was not enough to absorb the growing number of people seeking work, pushing the jobless rate up from 6.5 per cent in November.
In Ontario and Quebec, employment growth failed to keep pace with labour force expansion, contributing to higher unemployment rates in both provinces.
Nationally, job growth was concentrated in full-time positions. The healthcare and social assistance sector led gains, adding 21,000 jobs in December. Employment also increased in construction and in “other services,” a broad category that includes occupations such as hairdressers and auto mechanics.
Offsetting those gains, the professional, scientific and technical services sector shed 18,000 jobs, while accommodation and food services also recorded losses. Manufacturing, a sector sensitive to trade conditions, added 4,300 jobs during the month.
Average hourly wages rose 3.4 per cent year over year in December, easing slightly from a 3.6 per cent increase in November.
Economists surveyed by Reuters had expected employment to decline by 5,000 jobs, following strong gains of 181,000 positions over the previous three months.
Statistics Canada noted that the labour market faced pressure from U.S. tariffs through much of 2025, though conditions improved for job seekers toward the end of the year. Still, young workers continued to face challenges.
Employment among people aged 15 to 24 fell by 27,000 in December, reversing some of the gains recorded in October and November. The youth unemployment rate rose by half a percentage point to 13.3 per cent at year’s end. While that marked an improvement from the 15-year high of 14.7 per cent reached in September—outside the COVID-19 period—it remained elevated.
Friday’s jobs report is the final snapshot of labour market conditions ahead of the Bank of Canada’s first interest rate decision of the year, scheduled for later this month