But unemployment rate rises to 6.8% as more people look for work
Employment in Canada grew by 51,000 (+0.2%) in November, primarily driven by gains in full-time positions, according to the latest Labour Force Survey from Statistics Canada.
However, the unemployment rate increased by 0.3 percentage points to 6.8%, reflecting a rise in the number of people looking for work.
The rate of 6.8% is the highest since January 2017, excluding the pandemic years.
The number of unemployed Canadians rose by 87,000 (+6.1%) in November, bringing the total to 1.5 million. Notably, nearly half (46.3%) of unemployed individuals were new to the workforce or had not worked in over a year, up from 39.5% a year earlier.
Job numbers by age groups
Among youth aged 15 to 24, unemployment increased to 13.9%, marking a 1.1 percentage point rise from October. Core-aged women also faced higher unemployment at 5.8% (+0.3 percentage points), while the rate for core-aged men remained steady at 5.7%, according to StatCan.
The strongest employment growth was among core-aged men (25 to 54 years old), who saw an increase of 45,000 jobs (+0.6%), raising their employment rate to 86.5%. This growth offset recent declines, as the group experienced a cumulative drop of 0.5 percentage points in September and October.
In contrast, employment fell among women aged 55 to 64 years old by 20,000 (-1.3%), with their employment rate declining to 58.6%. This represents a significant drop from a peak of 60.5% in May 2024.
Other age groups saw little change in employment during November, says Ottawa.
Sectoral highlights
Public sector employment increased by 45,000 (+1.0%) in November, accounting for most of the month’s job growth. Over the past year, public sector employment grew by 127,000 (+2.9%), driven by gains in health care, social assistance, and education. In comparison, private sector employment rose by 1.3% (+173,000) over the same period.
Several industries posted gains, with the wholesale and retail trade sector adding 39,000 jobs (+1.3%), followed by construction (+18,000; +1.2%), professional, scientific, and technical services (+17,000; +0.9%), educational services (+15,000; +1.0%), and accommodation and food services (+15,000; +1.3%), says the government.
However, declines were recorded in manufacturing (-29,000; -1.6%), transportation and warehousing (-19,000; -1.7%), and natural resources (-6,300; -1.8%). The drop in transportation and warehousing was attributed in part to labour disputes, including port lockouts in Vancouver and Montreal and the Canada Post strike.
Regional job numbers for Canada
Employment in Alberta rose by 24,000 (+1.0%) in November, marking the province’s third monthly gain in four months. This growth lifted Alberta’s employment rate by 0.4 percentage points to 64.1%, although the unemployment rate remained relatively steady at 7.5%.
Quebec also saw robust growth, adding 22,000 jobs (+0.5%) during the month. The province’s employment rate increased by 0.2 percentage points to 60.9%, representing its first monthly gain since September 2023. Meanwhile, Quebec’s unemployment rate held steady at 5.9%, says Statistics Canada.
While employment in Ontario experienced little change in November, the province’s unemployment rate climbed by 0.8 percentage points to 7.6%, its highest level since May 2014 (excluding pandemic years). The rise was largely due to increased labour force participation, which grew by 0.4 percentage points, offsetting a similar decline recorded in October. The higher participation rate reflects more Ontarians entering the labour market and actively seeking work.
Manitoba and Prince Edward Island also posted employment increases. Manitoba added 6,600 jobs (+0.9%), while Prince Edward Island saw a significant proportional increase of 2,700 jobs (+2.9%). In Prince Edward Island, the employment boost contributed to a 2.0 percentage point drop in the unemployment rate, which fell to 8.0%.
Wages and work hours
Average hourly wages grew by 4.1% (+$1.40) year-over-year to reach $35.68 in November, following a 4.9% increase in October, says Ottawa.
Total hours worked were largely unchanged in November (-0.2%) but were up 1.9% compared to November 2023.
