Canada’s Job Market Rebounds: 54,000 Jobs Added, Unemployment Rate Drops to 6.5%

Statistics Canada reports that the job gains were primarily concentrated in part-time positions.

The Canadian labor market delivered another surprise to economists in November, recording a third consecutive month of job gains.

Statistics Canada reported on Friday that the economy added 54,000 new positions last month, defying economists’ expectations for a minor job loss.

The unemployment rate declined to 6.5% in November, down from 6.9% in October, marking the second consecutive monthly drop. Statistics Canada noted that the labor force saw 26,000 fewer people last month, which helped push the jobless rate lower.

The economy successfully added 181,000 jobs from September through November. Prior to this three-month run, labor market activity had been relatively cool since January as employers grappled with the uncertainty surrounding U.S. tariffs.

Part-Time Work and Youth Lead Gains

Statistics Canada pointed out that most of the job growth in November was concentrated in part-time work. The agency noted that the rate of people working part-time involuntarily remained largely unchanged from a year ago at 17.9%, and stood below the pre-pandemic average of 19.3% for the month.

• Youth Employment Surge: The youth demographic (aged 15 to 24) also significantly drove employment gains, bouncing back after coping with a tough labor market for most of 2025. Statistics Canada reported that this group added 50,000 jobs in November, following a gain of 21,000 positions in October.

• Youth Employment Rate: The youth employment rate reached 55.3% in November, up 1.7 percentage points from the record low recorded in July.

The job-finding rate—the percentage of those unemployed in October who secured a job in November—was 19.6%. The agency stated that this rate was slightly higher compared to the same months a year ago, suggesting that finding work has become marginally easier.

Sector Performance and Central Bank Focus

The health-care and social assistance sector led the job gains with 46,000 positions added last month, while the food and accommodation and natural resources sectors also expanded their workforce.

Conversely, wholesale and retail trade led the losses, shedding 34,000 positions in November. The trade-sensitive manufacturing industry also recorded job losses.

Average hourly wages rose 3.6% in November, a marginal tick higher than in October.

The November jobs figures represent the final major economic data release before the Bank of Canada is scheduled to make its last interest rate decision of the year on Wednesday.