Employment in Canada experienced a solid boost in December, with an increase of 91,000 jobs, marking a 0.4% rise from the previous month. The growth pushed the national employment rate up by 0.2 percentage points to 60.8%, while the unemployment rate saw a slight dip to 6.7%, reflecting a gradual recovery in the labor market.
The December gains align with the overall trend of 2024, which ended with a year-over-year increase of 413,000 jobs, or 2.0%.
The increase was particularly notable among men aged 25 to 54, who saw a rise of 30,000 jobs (+0.4%). Furthermore, men aged 55 and older experienced a significant uptick, adding 41,000 jobs (+1.7%). Employment for women in the same age group also rose by 21,000 (+1.1%), highlighting a positive trend for older workers. However, youth employment (aged 15 to 24) remained largely unchanged, continuing a downward trend seen since April 2023.
The job gains in December were felt across various regions, with Alberta leading the way with an increase of 35,000 jobs (+1.4%). Ontario followed with a 23,000-job increase (+0.3%), while British Columbia saw a rise of 14,000 jobs (+0.5%). In contrast, Manitoba experienced a decline of 7,200 jobs (-1.0%), with the unemployment rate in the province climbing by 0.4 percentage points to 6.2%.
Public sector employment was one of the significant contributors to the growth in December, with a gain of 40,000 jobs (+0.9%), marking the second consecutive monthly increase. This surge has been primarily driven by growth in the educational services and health care sectors. Over the course of 2024, public sector employment increased by 3.7%, contributing to a solid foundation of government-related job creation.
In contrast, private sector employment saw more modest growth, with an increase of 27,000 jobs (+0.2%) in December. The private sector’s year-over-year increase stood at 1.4%, which was slightly lower than the overall national rate. Self-employment also saw a boost, with 24,000 more people becoming self-employed in December, bringing the total increase in self-employment for the year to 64,000 (+2.4%).
While the employment rate showed improvement, wage growth has shown signs of slowing down. Average hourly wages rose by 3.8% compared to December 2023, reaching $35.77, a more modest pace compared to the 4.1% growth observed in November. Despite the slowdown, wage growth remains robust, with sectors like educational services, health care, and transportation continuing to drive employment in December. Notably, the finance, insurance, real estate, rental, and leasing industries also saw gains of 16,000 jobs (+1.1%) in the final month of the year.
One noteworthy trend highlighted in the 2024 Labor Force Survey is the significant role that U.S. demand plays in Canadian employment. Nearly 1.8 million workers, or 8.8% of total employment, were employed in industries closely tied to U.S. exports. The oil and gas extraction, pipeline transportation, and transportation equipment manufacturing industries tend to offer above-average wages, with workers earning an average of $37.24 per hour—6.5% higher than those in other industries.
Another significant development in the workforce is the rise of digital platform employment, which includes gig economy jobs facilitated by online platforms. In 2024, nearly 675,000 Canadians (2.3% of the population aged 15 to 69) participated in paid work through digital platforms. The most common roles included food delivery, personal transportation services, and content creation. It especially continues to grow among younger people and immigrants. South Asian, Black, and Chinese Canadians were notably more likely to participate in digital platform work compared to other demographic groups.
As Canada moves into 2025, the labour market appears poised for continued growth, albeit at a slower pace. The year ended with 2.0% employment growth, largely mirroring trends seen in the previous year. Although wage growth has decelerated, the ongoing rise in employment across multiple sectors, particularly in public services and industries dependent on U.S. demand, is a promising sign for Canada’s economic future.
However, challenges remain, particularly in the youth employment sector and in regions like Manitoba where job losses were recorded. Moreover, the slowing pace of population growth could temper future labor force expansion. For now, the employment landscape remains largely positive, and its close ties with the U.S. continue to be a key factor in driving job creation across various industries.
As Canada enters 2025, the strength of the labor market will continue to be a crucial indicator of the nation’s economic health, with public sector growth, wage dynamics, and digital platform employment likely to be key themes in the coming year.