Question Period Note: LABOUR FORCE SURVEY – November 2025

• Employment rose by 54,000 in November, above market expectation for a loss of 2,500 jobs.
• The unemployment rate declined to 6.5% from 6.9% while markets were expecting it to edge up to 7.0%. The labour force participation rate fell to 65.1% (-0.2 p.p.).

• The Canadian economy has now seen three consecutive months of stronger-than-expected job gains, with 54,000 jobs added in November and 181,000 jobs over the past three months.
• The unemployment rate fell to 6.5 per cent from 6.9 per cent in November and is down 0.6 percentage points from its recent peak in August. This is the lowest level since July 2024.
• The November report showed signs of recovery in a labour market that has been impacted by U.S. tariffs.
• Total employment is up by 142,000 since January, with 42,000 more full-time jobs and 144,000 more private sector jobs.
• Wage growth is strong and has now outpaced inflation for 33 straight months.
• Budget 2025 presents a clear plan to spend less to invest more through generational investments that will build Canada’s economy to be the strongest in the G7 and deliver better-paying jobs.

N/A

• Bottom Line: The labour market has now seen three straight months of stronger-than-expected job gains (+181,000 overall or averaging 60,000 per month), recovering from weakness seen over the spring and summer. Job gains were primarily in the private sector, though entirely in part-time work for a second month. Meanwhile, the unemployment rate fell significantly (-0.4 p.p.) and is now down 0.6 p.p. from its recent peak in August. Overall, the report indicates that the labour market is recovering after being strained by the effects of U.S. tariffs earlier this year. Other indicators like payroll data, hiring intentions, and job vacancies continue to point to labour market softness.
• Key Labour Market Indicators: Employment rose by 54,000 in November, following similar gains in September and October (+127,000 combined). The labour force participation rate declined to 65.1% (-0.2 p.p.). As population growth continues to slow, fewer new jobs (11,000 per month) are needed to keep the employment rate constant. With job creation well above this level in November, the employment rate rose to 60.9% (+0.1 p.p.)—its third consecutive increase. The unemployment rate fell to 6.5% (-0.4 p.p.) due to strong job growth and fewer people looking for work.
• Industries: Employment growth was driven by both the private sector (+52,000) and the public sector (+16,200), while self-employment declined (-15,000). Job gains were seen in eleven of sixteen industries, led by healthcare and social assistance (+46,000), accommodation and food services (+14,000), and the natural resource sector (+11,000). The largest decline was seen in wholesale and retail trade ( 34,000), offsetting much of October’s gain. Manufacturing (-9,000) fell after two consecutive months of gains but remains down 31,000 since January.
• Provinces: Eight provinces saw job gains in November, with growth led by Alberta (+29,000). The unemployment rate fell in six provinces, with the largest decreases in Alberta and New Brunswick (both -1.3 p.p.). Manitoba and Newfoundland and Labrador had the largest increases (+0.3 p.p.).
• Full-Time Jobs and Hours Worked: Job gains were entirely in part-time positions for a second month (+63,000), with full-time employment down modestly (-9,000). The share of full-time workers fell to 81.5% of total employment (-0.3 p.p.) but remains above its 2019 average (81.0%). Total hours worked rebounded (+0.4%) after declining in October amid labour disputes and are now up 1.2% year-over-year.
• Demographics: The unemployment rate fell for both men (-0.4 p.p. to 6.7%) and women (-0.2 p.p. to 6.4%). Job gains were primarily among youth (+50,000), with their unemployment rate falling to 12.8% (-1.3 p.p.)—its lowest level since May 2024. The unemployment rate also fell for core-aged workers (-0.2 p.p.) and held steady for older workers.
• Wages: Headline wage growth edged up to 3.6% year-over-year in November (+0.1 p.p.), above its 2019 average (2.7%). Adjusting for the composition of the workforce, wage growth rose to 3.8% year-over-year (+0.3 p.p.). In October (latest month of CPI data), wage growth (+3.5%) continued to outpace inflation (+2.2%), leading to a 1.3% gain in real wages on a year-over-year basis.