Canada unemployment rate holds steady at 5.8% in December

OTTAWA — Canada's unemployment rate remained unchanged at 5.8 per cent in December, a figure slightly lower than analysts expected, the national statistical agency said recently.

Employment meanwhile held steady in December, after only small changes in November (+0.1 per cent) and October (+0.1 per cent), Statistics Canada said in a press release.

Last month, some 1.2 million Canadians were unemployed, up 202,000 (+19.3 per cent) compared to the year before.

"The employment rate has trended down in 2023, as population growth generally outpaced employment gains," Statistics Canada said.

The population aged 15 and older grew by 74,000 in December, according to the agency.

Employment increased in particular in the professional, scientific and technical services (+46,000) and in the healthcare and social assistance sector (+16,000).

It mainly fell in wholesale and retail trade (-21,000) and manufacturing (-18,000).

"Overall, job growth slowed significantly in the second half of last year," Desjardins analyst Royce Mendes said in a note, adding that the unemployment rate in December was "a touch lower than what the consensus had been anticipating".

Statistics Canada additionally noted that "the unemployment rate generally trended up from April to December for all major demographic groups", with biggest increases among those age 15 to 24.

The Statistics Canada communique additionally noted the more than 160,000 public sector employees in Quebec, including teachers and nurses, who lost work hours in December due to the strike they led last month.