Canada’s unemployment rate declined to 6.5 per cent in November, reversing much of the upward trend seen throughout 2025 and marking its lowest level in 16 months, according to new data released by Statistics Canada. The drop from October’s 6.9 per cent follows a spike to 7.1 per cent in September — the highest since 2016 outside the pandemic years.
BMO chief economist Douglas Porter noted that such a sharp two-month improvement hasn’t occurred since the tech boom of 1999. He said slower population growth, and therefore slower labour-force expansion, has eased pressure on the national job market.
The labour market added 54,000 net new positions last month, the third straight monthly gain. Most of the increase came from part-time roles in the private sector. Young workers — who have faced historically tough hiring conditions this year — led the rebound. Unemployment among Canadians aged 15 to 24 has now dipped to 12.8 per cent.
Employment gains were concentrated in health care and social assistance, accommodation and food services, and natural resources. Losses were recorded in wholesale and retail trade, partially erasing gains made earlier in the fall.
Alberta posted the strongest growth with 29,000 new jobs, while New Brunswick and Manitoba also saw increases. Other provinces held steady.
Average hourly wages climbed 3.6 per cent year-over-year to $37.00, continuing a pace of wage growth that, paired with hot inflation and surprisingly strong Q3 GDP, points to a central bank in no hurry to cut borrowing costs.
Porter wrote that the robust data “quashes any lingering prospect of a near-term Bank of Canada rate cut.” The next rate decision will be announced Wednesday.
