Canadian Job Market Shows Growth Amid Rising Inequalities

Canada’s job market experienced modest growth in 2025, with new data revealing an increase in employment that masks underlying disparities. According to Statistics Canada, the unemployment rate in December 2025 rose to 6.8 percent, up from 6.5 percent in November but down from a high of 7.1 percent in August. While overall employment grew by approximately one percent compared to 2024, economist Kaylie Tiessen warns that the headline numbers conceal significant turmoil beneath the surface.

Tiessen, who serves as chief economist for the Canadian SHIELD Institute, highlighted that when analyzing the data by province, age group, and gender, stark disparities emerge. In British Columbia, the creation of 32,000 jobs in 2025, with about 60 percent being part-time positions, is indicative of broader uncertainties affecting both employers and workers. “Part-time jobs usually result in lower incomes, and so income insecurity and financial insecurity are the kind of things that we’d worry about going forward,” said Iglika Ivanova, economist and co-executive director at BC Policy Solutions.

Statistics Canada’s monthly labour force survey, released on January 5, 2026, also revealed that the number of Canadians holding multiple jobs reached a ten-year high of 1,178,600. Tiessen noted that this trend reflects both precarious employment conditions and employer uncertainty about the future. “We should be noticing that employers are hiring, but they’re also feeling uncertain about the future,” she stated.

The gender dynamics in the job market showed a slight advantage for women aged 25 and older, as employment for this group rose by approximately 114,000 compared to the previous year. Out of these, about 104,000 positions were full-time. In contrast, men in the same age bracket saw an increase of 67,000 jobs, with 59,000 being part-time. Tiessen emphasized the need for further research to understand these trends.

Youth employment remains a concern, with the annual unemployment rate for Canadians aged 15 to 24 reaching 13.8 percent, up from 13.1 percent in 2024. Tiessen pointed out that younger workers have experienced rising unemployment at a significantly faster rate than other age groups in recent years. As the summer job market approaches, uncertainty looms over whether these challenges will persist for young job seekers.

Ivanova remarked on the broader implications of the job data, stating, “That’s what we need to be worrying about or monitoring, is that gap in economic security.” Despite the slight overall improvement in job numbers, issues such as housing affordability continue to plague many Canadians, indicating that wage growth is not keeping pace with living costs.

Looking ahead, Tiessen warned that while economists often focus on aggregate data to suggest overall economic health, the reality is more complex. “There are microcosms of experiences in different cities and provinces that display something quite different,” she concluded, highlighting the need to address the varied realities faced by workers across Canada.