Canada’s labour market delivered another surprise in November 2025, adding 54,000 new jobs and pushing the unemployment rate down to 6.5%, its lowest point in 16 months. This marks the third consecutive month of strong job growth, signalling a labour market rebound after months of sluggish performance.
In this analysis, we break down where the jobs came from, who benefited the most, and what this means for Canadians heading into the new year.
📉 Unemployment Rate Drops as Labour Market Tightens
Statistics Canada reported that unemployment decreased from 6.9% in October to 6.5% in November. Interestingly, this drop happened partly because 26,000 people left the labour force, which helped reduce the jobless rate.
Between September and November, Canada added a total of 181,000 jobs, defying economists' expectations of job losses amid economic uncertainty and U.S. tariff pressures.
📌 Where the Jobs Came From
Not all sectors contributed equally. According to StatCan, the biggest growth occurred in:
1️⃣ Health Care & Social Assistance (+46,000 jobs)
This sector led the gains, reflecting Canada’s ongoing need for healthcare workers and support professionals.
2️⃣ Accommodation & Food Services
Hospitality continued to recover as demand strengthened post-summer.
3️⃣ Natural Resources
Modest but meaningful growth supported by energy and mining activity.
📉 Sectors That Lost Jobs
Some industries weren’t as fortunate:
Wholesale & Retail Trade (-34,000 jobs)
Manufacturing also reported job losses — expected in a tariff-sensitive economic environment.
👥 Youth Employment Surges
A major driver of November’s job numbers: Canadian youth (15–24).
+50,000 youth jobs, building on another +21,000 in October.
The youth employment rate rose to 55.3%, recovering from a record low in July.
This is the first consistent youth employment growth in 2025 — a strong indicator that younger workers are finally re-entering the job market with better prospects.
💰 Wage Growth Remains Steady
Average hourly wages increased 3.6% in November, slightly above October’s growth rate. With inflation moderating, this suggests real wages may be slowly improving for many Canadians.
🏦 What This Means for the Bank of Canada
These numbers arrive just days before the Bank of Canada’s final interest rate decision of the year.
A tightening labour market typically signals economic strength, but wage growth and sector shifts may push the Bank to carefully balance inflationary risks.
📊 Final Thoughts: A Labor Market Rebound With Caveats
Canada’s job market is showing strong resilience:
✔ Consistent multi-month job gains
✔ Youth employment revival
✔ Strong hiring in essential sectors like health care
But challenges remain:
✖ Retail and manufacturing weakness
✖ High rates of involuntary part-time work
✖ Fewer people participating in the labour force
For workers, this could mean more opportunity in specific sectors — especially health and social services — while businesses may face tighter hiring conditions ahead.
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