Canada closed out 2024 on a high note, with the economy adding an impressive 91,000 jobs in December—nearly four times what experts had forecast. This unexpected growth helped lower the national unemployment rate to 6.7%, down from 6.8% in November.
Where the Jobs Came From
According to Statistics Canada, job gains were seen across different sectors:
- 40,000 in the public sector
- 27,000 in the private sector
- 24,000 from self-employment
Notably, 56,000 of these positions were full-time roles.
A Strong Finish to 2024
This marks the third time in four months that Canada has posted positive job numbers. December’s increase was the largest single-month gain since January 2023, when 150,000 jobs were added. Economists had expected only 25,000 new jobs and a slight uptick in the unemployment rate to 6.9%, making these results a pleasant surprise.
Douglas Porter, Chief Economist at BMO, noted, “The Canadian job market ended 2024 on an upbeat note, proving that the broader economy is regaining strength.”
Key Industries Driving Growth
The strongest job gains were in:
- Educational services
- Transportation and warehousing
- Financial and real estate services
- Healthcare and social assistance
In fact, healthcare and education alone accounted for nearly half of all employment growth over the past year. By December, Canada had 413,000 more people employed than at the same time in 2023.
Wage Growth and Youth Unemployment
While the job market is growing, wages have slowed slightly. Average hourly wages rose by 3.8% year-over-year in December, down from 4.1% in November. Meanwhile, the youth unemployment rate increased to 14.4%, reflecting a 1.6 percentage point rise over the last two months.
Outlook for 2025
The Bank of Canada is expected to take a measured approach to interest rate cuts, with forecasts suggesting the current policy rate of 3.25% could drop closer to 2% by the end of the year. However, uncertainty looms with potential U.S. tariffs, as nearly 1.8 million Canadian jobs depend on U.S. demand for exports.
What This Means for You
For Canadians, a strong labour market can boost confidence in job security, which is great news for prospective homeowners. At TopRankinMortgages, we’re here to help you take advantage of these positive trends and secure your dream home. Whether you’re a first-time buyer or looking to upgrade, now is a great time to explore your options.
Have questions about how these economic changes might impact your mortgage plans? Reach out to us—we’d love to guide you every step of the way.
