Canada’s national unemployment rate increased to 6.8% in December 2025, up from 6.5% in November, according to the latest Labour Force Survey published by Statistics Canada. The rise came even as the labour force saw modest job gains.

Economists said the shift reflects the labour market adjusting as more people entered the workforce but were not immediately able to find work. This created upward pressure on the jobless rate despite positive signs elsewhere in the employment numbers.

👥 Job Growth Remains Modest

Data shows that employment in Canada was nearly unchanged in December, with a net increase of about 8,200 jobs. Full-time jobs rose slightly, while part-time positions declined.

The overall employment rate — the share of working-age Canadians with a job — held steady at 60.9% in December. Analysts say the slow growth contrasts with stronger gains earlier in the autumn months, when employment rose for three straight periods.

📈 Labour Market Participation Changes

Statistics Canada noted that the participation rate — the share of Canadians either employed or actively seeking work — climbed to 65.4%. This increase shows that more people are looking for work.

While rising participation is generally positive for long-term economic health, it also means the unemployment rate can rise when job creation does not keep pace with job seekers.

🧑‍🔧 Age and Regional Shifts in Employment

The survey also highlighted differences in employment patterns by age group. Older workers aged 55 and over saw employment gains during December, while youth employment declined for the month.

Provincial data showed variation across Canada. Some regions experienced increases in joblessness, while others posted slight declines. This mixed picture illustrates that local conditions can differ from national trends.

📌 What the Data Suggests

Economists say the overall trend points to a labour market that still shows resilience but faces slack. The increase in job seekers without a corresponding rise in available positions suggests employers remain cautious in expanding payrolls.

Trade tensions, broader economic slowdowns, and structural changes in industries also influence hiring patterns. However, moderate gains in full-time work offer some optimism.