Canada’s unemployment rate fell to 6.5% in November, a 16-month low and far better than expectations for a 7% increase. Net job growth of 53,600 was driven largely by part-time jobs in the health care and social assistance sectors, which contributed to the increase.
The Canadian economy added 181,000 jobs in the last three months, offsetting a first eight months of the year that saw almost no job growth due to U.S. tariffs and trade uncertainty. The decline in the unemployment rate was also driven by a shrinking labor force as immigration restrictions reduced the number of new workers.
Youth employment surged for the second straight month, rising by 50,000 in November. This marked a strong recovery after the youth unemployment rate hit a 15-year high in September. The youth unemployment rate is now down to 12.8%.
Employment for core age groups remained stable, indicating an uneven recovery across demographics. While certain sectors are slowing due to US tariffs, others such as healthcare continue to create opportunities.
Full-time employee wages rose 4% year-over-year, the same as in October, indicating that wage pressures remain strong, which is an important factor in the Bank of Canada's inflation monitoring.
