Canada's labour market showed signs of cooling in the final month of 2024, with the national unemployment rate ticking higher as more Canadians began looking for work. According to the latest data from Statistics Canada released on Friday, January 9, 2026, the unemployment rate rose to 6.8 per cent in December, up from 6.5 per cent recorded in November.
Job Gains Slow Significantly
The report revealed that the Canadian economy added a net total of 8,300 jobs in December. This figure represents a sharp deceleration from the robust gain of 54,000 positions reported for the previous month of November. The December numbers indicate a cooling pace of hiring as the year came to a close.
A deeper look into the composition of employment reveals a mixed picture. Full-time employment saw an increase of 50,000 jobs last month. However, this positive movement was partially offset by a notable decline in part-time work, which fell by 42,000 positions. Statisticians noted that this shift helped counterbalance some of the strong gains observed in the part-time sector during October and November.
A Year of Part-Time Job Growth
Examining the broader annual trend provides crucial context for the monthly figures. Over the course of the past 12 months, growth in part-time employment has significantly outpaced the expansion of full-time roles. On a year-over-year basis, part-time work has surged by 2.6 per cent, while full-time employment has grown by a more modest 0.7 per cent.
Implications for the Canadian Economy
The rise in the unemployment rate, coupled with the slowdown in net job creation, suggests the Canadian labour market is entering a new phase. The increase in the rate itself was driven in part by a rise in the number of people actively searching for employment, which can indicate growing confidence in job prospects or economic necessity. Analysts will be watching closely to see if this trend marks the beginning of a broader economic softening or a temporary recalibration following earlier strong gains.
The data from Statistics Canada serves as a key economic indicator for policymakers at the Bank of Canada and within the federal government. The balance between full-time and part-time work, along with wage growth not detailed in this initial report, will be critical factors in assessing the overall health and direction of the Canadian economy as it moves into the new year.
