Canada’s labour market experienced a mixed bag of results in December 2025, with overall employment holding steady while the unemployment rate saw a slight uptick. After a period of consistent gains, the latest data from Statistics Canada reveals a dynamic landscape characterized by shifts across demographics, industries, and provinces. As the year drew to a close, Canadians navigated a market with both cautious stability and evolving challenges, particularly for younger workers and those in specific sectors.
### National Employment and Unemployment Snapshot
December 2025 saw Canada’s employment levels remain largely unchanged, with a modest increase of just 8,200 jobs, representing a 0.0% monthly change. The national employment rate consequently held firm at 60.9%. However, the unemployment rate edged up by 0.3 percentage points, reaching 6.8%. This increase indicates that more individuals were actively seeking employment, contributing to the rise in job seekers across the country.
Delving deeper, full-time employment showed some resilience, increasing by 50,000 positions (+0.3%). In contrast, part-time work saw a decrease of 42,000 jobs (-1.1%), partially offsetting earlier gains in the preceding months. Over the entire year of 2025, part-time employment grew at a faster pace (+2.6%) than full-time employment (+0.7%), highlighting a growing trend towards flexible work arrangements.
### Wages and Demographic Shifts
For those employed, average hourly wages saw a year-over-year increase of 3.4% in December, bringing the national average to $37.06. This follows a 3.6% growth recorded in November, suggesting a continued, albeit slightly moderated, upward trend in earnings.
Labour market conditions varied significantly across different age groups:
* **Older Workers (55 and over):** This demographic experienced positive growth, with employment rising by 33,000 individuals (+0.8%). Their unemployment rate also improved, falling 0.2 percentage points to 5.1%.
* **Youth (15 to 24):** Younger workers faced a more challenging month, with youth employment declining by 27,000 (-1.0%). Consequently, their unemployment rate climbed by 0.5 percentage points to 13.3%, indicating increased difficulty for this group in finding work.
* **Core-Aged (25 to 54):** Both core-aged men and women saw their unemployment rates increase by 0.4 percentage points, reaching 6.0% and 5.9% respectively, primarily due to a rise in job search activity.
### Industry-Specific Performance
December brought notable shifts in various industries:
* **Growth Sectors:** The health care and social assistance sector continued its expansion, adding 21,000 jobs (+0.7%). Other services, encompassing personal and repair services, also saw a robust increase of 15,000 positions (+2.0%).
* **Declining Sectors:** Employment decreased in professional, scientific, and technical services (-18,000; -0.9%), accommodation and food services (-12,000; -1.0%), and utilities (-5,300; -3.0%).
### Provincial Labour Market Variations
Provincially, the employment picture was diverse:
* **Quebec:** Experienced an increase of 16,000 jobs (+0.3%), marking its first significant gain since June 2025.
* **Alberta and Saskatchewan:** Both provinces saw declines, with Alberta losing 14,000 jobs (-0.5%) and Saskatchewan seeing a decrease of 4,000 (-0.6%).
* **Ontario:** Employment remained largely unchanged for the second consecutive month, though its unemployment rate rose by 0.6 percentage points to 7.9% as more people entered the job search.
### The Rise of Digital Platform Work
In a special spotlight, the Labour Force Survey highlighted the persistent role of digital platform work. In December 2025, approximately 667,000 Canadians (2.3% of the population aged 15 to 69) engaged in paid work through digital platforms over the preceding 12 months, a figure consistent with the previous year. This often involves tasks like food and goods delivery, personal transport services, and online selling.
Key characteristics of digital platform workers include:
* **Secondary Income:** Less than a quarter (21.8%) considered this their main job.
* **Motivation:** Nearly half (45.6%) primarily sought to supplement income, while others cited difficulty finding alternative work (15.4%) or the appeal of flexible hours (14.2%).
* **Recent Immigrants:** A notable trend shows that 8.4% of recent immigrants (those landed in Canada within the last five years) utilized digital platforms for work, a rate approximately six times higher than Canadian-born individuals (1.5%). This proportion for recent immigrants also saw a significant year-over-year increase.
### Looking Back at 2025 and Ahead
The year 2025 began with a stagnant labour market, impacted by economic uncertainties, particularly concerning trade. The first eight months saw minimal employment growth, a declining employment rate, and a rising unemployment rate that peaked at 7.1% in August. Hiring slowed considerably, and job vacancies decreased, indicating less difficulty for employers in filling roles.
However, the latter part of the year brought some improvements, with employment gains from August to November before stabilizing in December. While the unemployment rate ultimately rose in December, the overall trend towards the end of 2025 showed signs of recovery and adaptation within the Canadian labour market.
### Key Takeaways
* Canada’s employment held steady in December 2025, while the unemployment rate increased to 6.8%.
* Full-time jobs rose, but part-time employment saw a decline.
* Youth faced a tougher job market, with their unemployment rate rising to 13.3%.
* Health care and social assistance continued to grow, while professional services saw a decrease.
* Digital platform work remains a significant segment, especially for recent immigrants seeking income flexibility.
* Average hourly wages saw a 3.4% year-over-year increase.