Canada’s unemployment rate rose to 6.8% in December, above the 6.6% gain expected by analysts, as an increase in the number of people looking for work outpaced modest job growth, according to labour force data released on Friday by Statistics Canada.
The economy added 8,200 jobs in the month, leaving overall employment little changed. Analysts had expected a net loss of 5,000.
The participation rate increased to 65.4%, while the employment rate held steady at 60.9%, indicating that the rise in joblessness was driven by a larger labour force rather than widespread job losses.
December followed three months of strong hiring, during which employment rose by a combined 181,000 from September through November. That rebound contrasted with the first eight months of 2025, when employment was largely flat amid US tariffs and trade-related uncertainty that weighed on hiring decisions.
Job gains in December were concentrated in full-time work, which increased by about 50,000 positions. Part-time employment declined by roughly 42,000, partially offsetting earlier gains. Over the past year, part-time employment continued to grow at a faster pace than full-time work.
Health care and social assistance led sectoral gains, adding 21,000 jobs in December. Employment also increased in other services, including personal and repair services.
Offsetting those gains, professional, scientific and technical services shed about 18,000 positions, its first monthly decline since August. Accommodation and food services and utilities also posted job losses, while manufacturing added 4,300 positions.
Employment growth was strongest among Canadians aged 55 and over, while employment fell among youth aged 15 to 24. The youth unemployment rate rose to 13.3%, though it remained below the 15-year high reached in September outside the pandemic period.
Provincially, employment increased in Quebec, while declines were recorded in Alberta and Saskatchewan. Employment levels were little changed in the other provinces.
Average hourly wages rose 3.4% from a year earlier to $37.06 in December, moderating slightly from November’s pace.