Canada sees job growth in December, but unemployment rate climbs to 6.8 per cent

Canada added jobs for a fourth straight month in December, but the national unemployment rate rose to 6.8 per cent as more people entered the labour force, according to new data released by Statistics Canada on Friday. The figures highlight growing pressure in the labour market despite continued employment gains.

The federal agency reported that the economy added 8,200 jobs in December. Over the past four months, employment has increased by a combined 188,800 positions, suggesting steady hiring momentum across parts of the economy.

However, the unemployment rate rose as the number of people actively looking for work grew faster than job creation. Statistics Canada said the number of unemployed Canadians increased by 72,900 in December, marking the largest month-over-month rise since August 2022.

Economists note that the data reflects a labour market adjusting to slower economic growth, with population increases and higher participation rates making it harder for job gains to keep pace. The higher unemployment rate may also influence policy discussions as households continue to face affordability pressures.

Looking ahead, some analysts expect hiring to soften in the months ahead. A recent report from Deloitte Canada suggests businesses could scale back recruitment plans in the first half of 2026 amid concerns that tariffs and weaker demand may weigh on economic activity. Financial markets are also forecasting that the Bank of Canada is likely to keep its key interest rate unchanged for the remainder of the year.