Labour Market Outperforms Expectations
Canada’s labour market delivered a stronger-than-expected performance in November, adding 54,000 jobs despite forecasts calling for a slight decline. Statistics Canada reported the unemployment rate fell to 6.5 percent from 6.9 percent in October, marking a second straight monthly improvement. The drop was partially driven by 26,000 fewer people participating in the labour force.
From September through November, the economy added 181,000 positions, a sharp turnaround after months of subdued hiring linked to uncertainty surrounding U.S. tariffs earlier in the year.
Part-Time Roles and Youth Drive Gains
Most of November’s job growth came from part-time positions. StatCan noted that involuntary part-time work remained stable at 17.9 percent, below the pre-pandemic average for the month.
Youth aged 15 to 24 were a major source of gains, adding 50,000 jobs in November following a 21,000 increase in October. These represent the first back-to-back monthly improvements for the group this year. The youth employment rate rose to 55.3 percent, recovering from July’s record low.
Hiring Rates Improve as Key Sectors Expand
Among Canadians unemployed in October, 19.6 percent secured employment in November, slightly higher than a year earlier — suggesting job seekers are finding work with more ease.
Health care and social assistance led the month with 46,000 new positions. The accommodation and food services sector and natural resources also recorded gains. In contrast, wholesale and retail trade saw the steepest decline, shedding 34,000 jobs, while manufacturing continued to feel pressure from trade-related headwinds.
Wages Rise Ahead of Bank of Canada Decision
Average hourly wages increased 3.6 percent in November, edging up from October’s pace. The latest job report is the final major data point before the Bank of Canada’s last interest rate decision of the year on Wednesday, offering fresh evidence of resilience in the labour market despite broader economic uncertainty.