OTTAWA — Statistics Canada says Canada’s unemployment rate rose in December as more people started looking for work, even though the economy added jobs.
The agency reported that 8,200 jobs were added last month, beating expectations. However, the unemployment rate increased to 6.8 per cent, up from 6.5 per cent in November.
Job growth in Ontario and Quebec did not keep up with the number of people entering the workforce, which pushed unemployment higher in both provinces.
Economists say the rise in unemployment is not all bad news. More people looking for work suggests Canadians are feeling more confident about finding jobs.
Most of December’s job gains were in full-time work. The healthcare and social assistance sector led the increase, while construction and other services also added jobs. Losses were seen in professional services and in accommodation and food services.
Average hourly wages grew 3.4 per cent compared to a year earlier, slightly slower than in November.
Young people continued to face challenges. Workers aged 15 to 24 lost 27,000 jobs in December, and the youth unemployment rate rose to 13.3 per cent.
The report is the Bank of Canada’s final look at the labour market before its next interest rate decision later this month. Most economists expect the central bank to keep interest rates unchanged, saying the job market has cooled but remains stable.
