Canada Employment Research Brief

Job market closed 2025 on firmer footing. Employment edged up by 8,200 positions in December, leaving job growth effectively flat on the month. The unemployment rate also rose 30 basis points, to 6.8 per cent, as more residents entered the labour force. However, the soft finish should not overshadow the broader late-year rebound. After hiring largely stalled through August amid tariff-related uncertainty, clearer policy signals helped restore momentum in the fall. From September through December, employment increased by nearly 190,000 positions, driving total job growth in 2025 to 226,300 roles, or a 1.1 per cent year-over-year gain. Rather than signaling a setback that economists generally expected, December’s modest employment gain and a 30-basis-point drop in unemployment from the September peak reinforce the view that Canada’s labour market is stabilizing and beginning to recover, albeit in a choppy manner.