Canada’s labor market delivered a major upside surprise in November, adding 53.6k jobs versus expectations of a small -1.5k decline. The strength came almost entirely from part-time positions, which rose by 63k, offsetting a modest dip in full-time work. The gain pushed the employment rate up 0.1% to 60.9%, marking a notable stabilization after a year of softening labor momentum.
The unemployment rate dropped sharply from 6.9% to 6.5%, defying expectations for a rise to 7.0%. This reverses part of the labor market deterioration seen through most of 2025, when unemployment climbed to 7.1% in September—its highest level since 2016. The improvement suggests that labor demand remains healthier than previously believed, even in a slowing economic environment.
Wage data also supported the stronger labor picture. Average hourly earnings rose 3.6% yoy in November, up slightly from October’s 3.5% yoy, reaching CAD 37.00.
