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Canada’s labour market delivered a major upside surprise in November, with the unemployment rate dropping sharply to 6.5%, its lowest level since July 2024, according to new data from Statistics Canada.
The unexpected improvement was driven by a 53,600 net increase in employment, fueled almost entirely by a 63,000 surge in part-time jobs, particularly in the healthcare and social assistance sectors. Youth employment accounted for the bulk of the gains.
Economists had predicted a 5,000 job loss and an increase in joblessness to 7%, making November’s data a significant divergence from expectations.
Three Straight Months of Job Gains
November marked the third consecutive month of job growth, bringing total employment gains since September to 181,000. This momentum helped offset months of stagnation earlier in the year, when hiring was hampered by U.S. tariffs and trade-related uncertainty.
A decline in the overall labour force, partly due to government-imposed immigration restrictions, also contributed to the lower unemployment rate.
Youth Employment Rebounds
Youth workers, who have borne the brunt of job losses since President Trump’s tariff actions in March, saw notable improvement:
- Youth employment +50,000 in November
- Youth jobless rate fell 1.3 points to 12.8%, marking a second month of improvement
- September’s youth unemployment had hit a 15-year high, making the recent gains particularly significant.
Core-aged employment (25–54) — representing two-thirds of the labour force — was broadly unchanged.
Wages Hold Steady
Average hourly wages for permanent employees rose 4% year-on-year, unchanged from October. The Bank of Canada closely monitors this indicator for signs of inflation persistence.
November’s report suggests a labour market regaining momentum heading into year-end, though policymakers will be watching closely to see whether part-time hiring transitions into more durable, full-time job creation.
