Canada added 8,200 net new jobs in December 2025, following three months of strong gains, while the unemployment rate rose to 6.8% from 6.5% as more Canadians entered the labor force, according to Statistics Canada. Analysts had expected a net loss of 5,000 positions and a smaller rise in the jobless rate to 6.6%.
The Canadian dollar dipped slightly to C$1.3880 per U.S. dollar, or 72.05 U.S. cents, from C$1.3873, or 72.08 cents. Between September and November, the economy had added 181,000 jobs, a rebound after nearly stagnant hiring during the first eight months of the year due to U.S. tariffs and trade uncertainty.
In December, total unemployment reached 1.55 million, an increase of 72,900 people, or 4.9%, from November. Full-time employment rose by 50,200, while part-time positions declined by 42,000. Health care and social assistance sectors added 20,800 jobs, whereas professional, scientific, and technical services lost 18,100 positions, marking the first decline since August. Youth employment among those aged 15 to 24 fell by 1% after prior gains in October and November, reflecting ongoing economic uncertainty.
The average hourly wage of permanent employees increased by 3.7%, down from 4% in November, a key indicator tracked by the Bank of Canada for inflation trends. The central bank held its key policy rate steady at 2.25% on December 10, stating it remains appropriate to keep inflation near the 2% target, and money markets expect rates to remain on hold for the rest of the year. Economists noted that despite softer hiring and a rising unemployment rate, labor market conditions were not weak enough to alter Bank of Canada policy expectations.
