Story perspectives

Canada's Unemployment Rises Amid Job Market Challenges

1/10/2026

Summary

Canada's Job Market

In December 2025, Canada's unemployment rate rose to 6.8% from 6.5% in November, as 8,200 jobs were added.
The rise was the largest monthly increase in three years and reflected 81,000 new job seekers, many unable to find work.
The labor force participation rate increased to 65.4%.
Economists say the labor market recovery remains ongoing but may face challenges from ongoing trade tensions with the U.S.

Summary

Hontar Addresses Unemployment

In December 2025, London's unemployment rate rose to 7.6%, exceeding the national average and affecting about 27,000 individuals.
The increase coincided with layoffs at Fanshawe College and the CAMI plant.
Petrusia Hontar of the Elgin Middlesex Oxford Workforce Planning and Development Board said stagnating population growth and declining international student numbers may contribute to the rise, and that she remains optimistic about future recovery and regional diversification.

History

Historical Context

The 2008 financial crisis, triggered by a housing bubble and risky lending practices, led to a global recession. In the U.S., unemployment peaked at 10.1% in October 2009, while Canada saw rates reach 8.7%. The crisis resulted in over 8.7 million job losses in the U.S. alone, prompting ongoing economic challenges and calls for workforce development and regional diversification.

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Canada's Job Market

In December 2025, Canada's unemployment rate rose to 6.8% from 6.5% in November, as 8,200 jobs were added.
The rise was the largest monthly increase in three years and reflected 81,000 new job seekers, many unable to find work.
The labor force participation rate increased to 65.4%.
Economists say the labor market recovery remains ongoing but may face challenges from ongoing trade tensions with the U.S.

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