Canada’s labour market surprised to the upside in December, adding 91,000 jobs and lowering
the unemployment rate by 0.1 percentage points to 6.7%.
The number of jobs created in December, and the decline in the unemployment rate, each beat the consensus expectations of economists.
Economists had forecast job growth of 10,000 to 25,000 new positions in December.
The latest jobs report from Statistics Canada noted that the employment rate rose for the first time since January 2023.
The December labour report said that job gains were widespread and found in the education, transportation and finance sectors. Canada’s public sector added 40,000 jobs in the month.
In all, full-time employment across Canada rose by 56,000 positions in December.
While private sector employment was little changed in December (up by 27,000 jobs), self-employment rose for the first time since February 2024, gaining 24,000 positions.
The latest employment report noted decelerating wage growth, with average hourly wages rising 3.8% year-over-year in December, the slowest pace of growth since May 2022.
The labour report is likely to influence the Bank of Canada’s next decision on interest rates that is scheduled for Jan. 29.
The Bank of Canada’ benchmark overnight interest rate currently stands at 3.25% after the central bank lowered it a total of 1.75% in 2024.
