Employment Surges by 54,000 as Labour Market Records Third Straight Month of Gains
Canada’s labour market delivered a stronger-than-expected performance in November as national employment climbed by 54,000 jobs (+0.3%), marking the third consecutive monthly increase and underscoring renewed momentum following a slow start to 2025. According to today’s Labour Force Survey data, cumulative gains over September, October and November reached 181,000 jobs (+0.9%), a sharp turnaround from the stagnant labour conditions seen earlier in the year. The employment rate rose 0.1 percentage points to 60.9%, reflecting steady population-to-employment alignment and a labour landscape that appears increasingly resilient despite macroeconomic uncertainties. Much of November’s growth was led by a substantial increase in part-time employment (+63,000; +1.6%), which has outpaced full-time growth over the past three months. The private sector was responsible for most of the job creation, adding 52,000 positions (+0.4%), while public sector and self-employed categories remained stable.
Demographically, the bulk of new employment came from youth aged 15–24, who gained 50,000 jobs (+1.8%)—representing a significant rebound after months of weaker demand for younger workers earlier in the year. Meanwhile, employment among core-aged men and women showed little change but remains moderately higher compared with late summer levels. Sector-level data revealed strong performance in health care and social assistance (+46,000; +1.6%), accommodation and food services (+14,000; +1.2%), and natural resources (+11,000; +3.4%). Conversely, wholesale and retail trade experienced a notable decline of 34,000 jobs (-1.1%), partially offsetting October’s gains. Regionally, Alberta led all provinces with 29,000 new jobs (+1.1%), while New Brunswick (+5,500) and Manitoba (+4,500) also posted meaningful increases. Wage data remained supportive of consumer purchasing power, with average hourly earnings rising 3.6% year-over-year to $37.00.
Unemployment Drops to 6.5% as Joblessness Shrinks and Labour Participation Softens
Canada’s unemployment rate fell sharply to 6.5%, dropping 0.4 percentage points in November and reversing much of the upward trend seen through mid-2025. This decline follows a smaller decrease in October and brings the jobless rate back to levels last recorded in early 2024. The number of unemployed Canadians fell by 80,000 (-5.1%), reducing the unemployed population to 1.5 million—a sign that hiring activity has re-accelerated and job seekers are finding placements at a faster rate. The job-finding rate improved to 19.6%, up from 18.6% in November 2024, indicating that individuals who were unemployed one month earlier were more likely to secure jobs in November 2025 than in prior years. The national layoff rate remained stable at 0.7%, consistent with pre-pandemic norms and suggesting employers are maintaining workforce stability despite tighter financial conditions and sector-specific challenges.
Youth unemployment showed notable improvement, falling 1.3 percentage points to 12.8%, marking the second consecutive monthly decrease after reaching a decade-high level (excluding pandemic years) in September. Among core-aged Canadians, unemployment also declined, with men dropping to 5.6% (-0.4 ppts) and women to 5.5% (-0.2 ppts)—effectively erasing the increases recorded earlier in the year. Despite these positive signals, the participation rate slipped to 65.1% (-0.2 ppts), reflecting fewer Canadians actively seeking work.
This decline in participation may help explain the drop in unemployment, although strong job growth suggests genuine absorption into employment rather than exit from the labour force. While national conditions improved, provincial trends were mixed: Alberta’s unemployment rate dropped sharply to 6.5%, while Ontario saw a moderate decline despite limited job creation. Québec remained comparatively stable at 5.1%, supported by steady employment and lower layoff rates. Overall, November’s data points to a labour market that is tightening again, with demand for workers outpacing predictions of cooling economic activity.
Market Impact: What November’s Labour Data Means for Traders, the Canadian Dollar, and Policy Expectations
Today’s stronger-than-expected labour figures carry meaningful implications for financial markets, particularly for traders evaluating the trajectory of the Canadian dollar, interest rate expectations, and sector-level performance in Canadian equities. The combination of a 54,000-employment gain, a sharp drop in unemployment to 6.5%, and accelerating wage growth reinforces the perception of a resilient labour market—an outcome that may prompt investors to reassess expectations surrounding Bank of Canada policy decisions. Historically, stronger labour conditions reduce the urgency for monetary easing, and today’s report may temper market expectations for rate cuts in early 2026. As employment and wages continue rising, consumer spending capacity is likely to remain stable, supporting GDP growth projections and reducing recession probability. For traders, this environment could bolster confidence in Canadian equities tied to domestic demand, particularly in sectors such as retail, healthcare, and services.
In currency markets, the Canadian dollar often reacts positively to robust labour data, and today’s report increases short-term bullish sentiment. Higher employment and wages typically strengthen the CAD by signaling a healthier macroeconomic outlook. However, the market response will also depend on how energy prices and U.S. labour data influence North American trade dynamics. Sector-specific results also matter: strong employment gains in natural resources and healthcare suggest momentum in industries tied to growth and stability, which could encourage sector rotation in Canadian equities. Conversely, the decline in wholesale and retail trade employment raises caution for consumer discretionary and retail-focused stocks heading into the holiday season.
For traders, the report’s most actionable insight is the signal of renewed labour-market tightening, which may influence yield movements, strengthen the CAD, and support cyclical sectors. If upcoming inflation and GDP reports align with today’s strong labour data, markets may shift toward pricing a more delayed easing cycle—reshaping trading strategies across forex, bonds, and equities.
