The Canada labour market December 2025 showed little change, as employment held steady while the unemployment rate increased, according to the latest Labour Force Survey released by Statistics Canada. The data suggests that while hiring conditions remained stable late in the year, more Canadians were actively searching for work.

Canada Labour Market December 2025: Key Employment Data

Employment in Canada increased by 8,200 jobs (+0.0%) in December, leaving total employment essentially unchanged from November. The employment rate remained stable at 60.9%, following gains recorded earlier in the fall.

At the same time, the unemployment rate rose by 0.3 percentage points to 6.8%, reflecting an increase in the number of people looking for work. Statistics Canada noted that the rise was driven by higher job-search activity rather than widespread job losses.

Age and Sector Breakdown

Employment gains in December were concentrated among people aged 55 and older, where employment increased by 33,000 (+0.8%). In contrast, employment among youth aged 15 to 24 declined by 27,000 (-1.0%), contributing to a higher youth unemployment rate.

By industry, employment increased in:

• Health care and social assistance

• Other services, including personal and repair services

Employment declined in:

• Professional, scientific and technical services

• Accommodation and food services

• Utilities

These offsetting changes resulted in overall employment remaining largely unchanged for the month.

Wages and Labour Market Conditions

Average hourly wages continued to rise on a year-over-year basis. In December, average hourly wages increased 3.4% compared with a year earlier, reaching $37.06. Wage growth has remained relatively steady in recent months, even as employment growth moderated.

Statistics Canada also noted that while employment increased over the final months of 2025, December marked a pause in that momentum, with labour force growth contributing to the higher unemployment rate.

Regional Labour Market Trends

Provincial labour market outcomes were mixed in December:

• Quebec recorded employment gains

• Alberta and Saskatchewan saw declines in employment

• Other provinces experienced little net change

Employment in Ontario was largely unchanged, while the province’s unemployment rate remained above the national average.

Why the December Labour Market Data Matters

The combination of flat employment and a rising unemployment rate suggests that hiring has not fully kept pace with labour force growth. This points to lingering slack in the labour market, particularly for younger workers, even as wage growth remains positive.

Labour market data is closely watched by policymakers and financial markets as a key indicator of economic momentum and underlying inflation pressures.

Key Takeaway

Canada’s labour market ended 2025 with stable employment but a higher unemployment rate, reflecting increased job-search activity rather than broad job losses. Overall, the Canada labour market December 2025 data highlights steady conditions alongside emerging signs of softness as the economy heads into 2026.