November saw 53,600 new jobs, driving unemployment down to 6.5%, the biggest drop since 2022. Youth hiring surged, health care and social assistance added 46,000 jobs, and part-time work led overall gains. Over the last three months, employment has jumped 180,000, fully reversing summer losses.
Markets took notice: the Canadian dollar strengthened, interest rates moved higher, and expectations for Bank of Canada rate cuts faded. Some economists now see the potential for a 25 bps hike by late 2026.
Even with stronger-than-expected GDP growth, underlying data still points to areas of economic weakness—especially as U.S. tariffs pressure key sectors.
This summary is based on current data and the opinions of select Canadian economists.
If you have any questions about what this means for mortgages, rates, or your buying power, feel free to reach out.
