Canada's Shocking Job Surge: Unemployment Hits 16-Month Low

Canada's unemployment rate dropped to a 16-month low in November, driven by significant part-time job gains, mainly in the healthcare and social assistance sectors. Youth employment saw notable improvement, reversing months of minimal growth due to trade uncertainties. Immigration curbs also contributed to the labor market decline.

In a surprising turn, Canada's unemployment rate fell to a 16-month low in November, reaching 6.5%, primarily due to a surge in part-time jobs. The unexpected boost came as the country added 53,600 net jobs, largely benefiting the youth and bolstering employment figures for three consecutive months.

The healthcare and social assistance sectors played a crucial role in this upswing, contributing 63,000 net additions to the part-time workforce. This positive trend offsets previous stagnation in job growth, as U.S. tariffs and trade worries had hindered hiring earlier in the year.

Analysts had anticipated a job reduction and an increase in the unemployment rate. However, reduced immigration, stemming from government policies, further decreased the labor force. Youth employment witnessed a significant rise, with a 50,000 increase and a notable drop in the youth unemployment rate to 12.8% as of November.

(With inputs from agencies.)