FX.co ★ Canada Unemployment Rate Edges Higher

In December 2025, Canada's unemployment rate climbed to 6.8%, surpassing both the previous month's figure of 6.5% and market predictions of 6.6%. This increase is attributed to more individuals entering the workforce in search of employment. The rise slightly counteracts the total 0.6-percentage-point decrease seen over the preceding two months. The number of unemployed individuals grew by 73,000, reaching 1.6 million, whereas the labor force expanded by 81,000, resulting in the participation rate rising to 65.4%. Meanwhile, net employment saw an increase of 8,200, bringing the total to 21.14 million, signifying the fourth consecutive month of improvement. Employment gains were primarily due to a 50,200 jump in full-time positions, which compensated for a 42,000 reduction in part-time jobs.