Canada’s economy adds 90,900 jobs in December, jobless rate edges down

10:00 am Friday, January 10th, 2025

TORONTO (Reuters) – Canada’s economy gained a net 90,900 jobs in December, largely in full-time work, and the jobless rate edged down to 6.7%, Statistics Canada data showed on Friday.

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COMMENTARY

ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATES STRATEGY, TD SECURITIES

“Very strong report. The full-time, part-time split was favorable. Hours worked were up sharply, you had a little bit of deceleration in wages.”

“Looking at the January meeting (for the Bank of Canada), the argument I would make is that it confirms their intention to slow the pace of easing.”

“The unemployment rate at 6.7% is still consistent with there being slack in the economy and 3.25% is right at the top of their range of estimates for the neutral rate. So given slack in the economy and the current levels of the overnight rate, I do expect them to cut by 25 basis points in January regardless of how external factors evolve between now and then.”

DOUG PORTER, CHIEF ECONOMIST AT BMO

“We were looking at a modest increase, but obviously this is not a modest increase. I think we have to be careful in assessing any single-month employment report because it can be quite volatile. I think this does support the view that the underlying domestic economy was starting to gather momentum in the second half of 2024. But you know the employment numbers can bounce around a lot. So I would not read too much into the single monthly number, but it is encouraging that the unemployment rate took a small step back and the overall employment rate actually managed to rise. I guess one thing that the Bank of Canada would be slightly encouraged by would be the moderation in the wages to below four percent.”

ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS

“Today’s report is clearly better than anticipated, although the unemployment rate is still elevated and indicative of slack within the economy, and we still see the need for further interest rate cuts to fully reduce that excess capacity.” 

(Reporting by Fergal Smith and Divya Rajagopal; Editing by Caroline Stauffer)