In December 2024, Canada’s unemployment rate decreased slightly to 6.7%, down from 6.8% in November. This figure was better than the expected 6.9%, though it still represents the second-highest reading since September 2021. The small decline in unemployment reflects ongoing challenges in the labor market, which have been a point of concern for the Bank of Canada and policymakers recently.

Decrease in Unemployed Population

The number of Canada’s Unemployment Rate individuals in Canada fell by 24,200, bringing the total to 1,492,100. This decrease is a positive sign for the job market, as fewer people are actively seeking work. At the same time, employment grew by 91,000, increasing the number of employed individuals to 20,738,000. This rise in employment indicates a steady recovery, even if the labor market remains soft overall.

Mixed Job Losses Among Different Age Groups

The data showed mixed results across different age groups. Joblessness among youth rose by 17,600, bringing their total to 462,200. However, the core-aged population (those between 25 and 54) saw a decrease in unemployment, dropping by 27,000 to 801,100. Additionally, the older population (55 and over) also experienced a decline in joblessness, falling by 14,700 to 228,800. These trends highlight the varying challenges faced by different demographic groups within the labor market.

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Stable Labor Force Participation Rate

Canada’s labor force participation rate remained unchanged at 65.1%, a four-month high. This stability suggests that the proportion of the working-age population either employed or actively seeking work has remained steady, indicating a consistent level of workforce engagement despite the challenges posed by a softening job market.

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