November delivered another month of job gains; 54,000 more Canadians working and a drop in unemployment to 6.5%. On paper, it looks like the labour market is tightening. But a deeper look at the numbers shows a more complex story: all net growth was in part-time work, nearly one-third of the decline in unemployment came from people leaving the labour force, and most gains went to youth in sectors known for lower wages and limited hours.
For employers navigating 2026 workforce planning, the message is clear:
Canada is adding jobs, but not necessarily the kind of full-time, high-quality work that strengthens productivity or reduces hiring challenges.
Key Takeaways for Employers
- 54,000 jobs added, but virtually all growth came from part-time work.
- Unemployment fell to 6.5%, yet 26,000 people left the labour force, masking weaknesses.
- Youth jobs surged (+50,000) which is helpful, but many may be shorter-hour roles that won’t reshape long-term supply or address training and skill gaps.
- Private sector hiring drove the gains; public sector was flat.
- Retail employment dropped (-34,000), while health care (+46,000) and hospitality (+14,000) expanded.
- Alberta leads job growth, while Ontario and Quebec remain flat.
- Job security is falling even as wages rise 3.6% year-over-year.
1. Canada Added 54,000 Jobs; But They Were Mostly Part-Time
StatCan reports that part-time employment grew by 63,000 jobs, while full-time work was essentially unchanged.
This means:
- Many Canadians gained work, but not necessarily the hours or income they want or need.
- 1 in 5 part-time workers is involuntarily part-time, signalling hidden availability for employers.
- Over the last three months, part-time jobs have grown five times faster (in percentage terms) than full-time jobs.
This is a labour market growing in quantity, not necessarily in quality.
2. Youth Drove November’s Gains; But Durability Is Uncertain
Youth aged 15–24 accounted for 50,000 of the 54,000 jobs gained.
Their employment rate rose to 55.3%, and unemployment fell to 12.8% — still high, but improving.
The sector mix matters:
- Accommodation & food services: +14,000
- Health care & social assistance: +46,000
- Wholesale & retail trade: -34,000
These industries are heavily youth-dominated and often offer lower wages, fluctuating hours, no benefits and less stability.
Even though StatCan adjusts for predictable holiday hiring, many of these roles may not persist into late winter.
3. The Decline in Unemployment Isn’t Just About Hiring
Unemployment dropped from 6.9% to 6.5%, but the reasons are split:
- ~54,000 Canadians found jobs
- ~26,000 Canadians left the labour force
A shrinking labour force can indicate:
- Discouragement
- End of Education or EI eligibility
- Caregiving demands
- Retirement
- Migration out of province or out of country
This means the decline in unemployment may overstate true labour-market strength. For employers, a smaller labour force often translates into shallower talent pools.
4. Hiring Came from the Private Sector and Not Government Growth
Breaking down employer types:
- Private sector: +52,000 jobs
- Public sector: little change
- Self-employed: little change
Sector highlights:
Growing
- Health care & social assistance: +46,000
- Accommodation & food services: +14,000
- Natural resources: +11,000
Declining
- Wholesale & retail trade: –34,000
- Some manufacturing sub-sectors showing softening (aligning with recent layoff announcements)
Overall, private-sector demand remains active, but gains are concentrated, not broad-based.
5. Regional Breakdown: Alberta Pulls Ahead
Alberta: Canada’s standout in November
- +29,000 jobs (+1.1%)
- Unemployment rate down to 6.5%
- Strong growth in resource sectors, construction, and youth hiring
New Brunswick and Manitoba
Both saw solid employment gains (+5,500 and +4,500 respectively).
Ontario and Quebec
Employment was little changed, and both provinces have shown flat job growth all year.
Ontario’s unemployment rate remains elevated at 7.3%.
For employers, this means:
- Alberta will continue to see tightening competition for talent.
- Central Canada’s hiring market will remain uneven and sector-dependent.
6. Wages Are Outpacing Inflation, while Job Security Is Falling
- Average hourly wages rose 3.6% year-over-year to $37.00/hour.
- Inflation (CPI) sits at 2.2%, giving Canadians a small real wage gain.
But despite wage growth:
- The share of Canadians confident they won’t lose their job in the next 6 months has fallen by 4.1 percentage points compared to last year.
- Confidence dropped especially in:
- public administration
- education
- professional, scientific & technical services
Workers remain anxious, and that anxiety affects productivity, retention, and mobility.
What This Means for Employers
1. The talent shortage isn’t over; it’s just shifting.
A falling unemployment rate hides the real challenge: fewer active job seekers.
2. Under-employed workers are your biggest opportunity.
Millions of Canadians are working fewer hours than they want.
Full-time stability and predictable schedules are major differentiators.
3. Sector-specific strategies matter more than ever.
- Alberta: competition is heating up.
- Ontario/Quebec: more candidates available, but uneven skill alignment.
4. Stability, career growth, and skill development attract top candidates.
With job security falling, workers value internal mobility, skill-building, and transparent progression.
“The headline numbers suggest momentum, but the composition of those jobs matters even more. When growth leans heavily on part-time and short-term roles, it underscores a deeper challenge in our economy: we’re creating work but not always building sustainable employment opportunities that strengthen productivity or resilience. Employers who invest in stability, skills, and long-term capability will be the ones who benefit most as the labour market continues to shift,” adds Craig Brown, CEO, Agilus Work Solutions.
How Agilus Can Help Canadian Employers
Agilus partners with employers across Canada to navigate shifting talent markets, including changing labour-force participation, part-time growth, and industry-specific skill shortages.
We support employers by:
- identifying hidden full-time talent in part-time roles
- connecting you with specialized workers across engineering, technology, operations, life sciences, administrative and light industrial
- advising on competitive hiring strategies tailored to your region and sector
- providing real-time labour insights to support workforce planning
Whether you’re scaling, stabilizing, or navigating uncertainty, our recruitment experts can help you build a resilient workforce that supports productivity and performance.
About Agilus Work Solutions
Agilus is a Canadian-owned, full-service recruitment firm with nearly 50 years of experience, an ISO®-certified hiring process, and a deep national talent network. We connect employers with specialized talent in engineering, technology, life sciences, office professional roles, public sector, and light industrial staffing, delivering the expertise you need to fuel productivity, innovation, and growth.
As experts in specialized talent, we combine national reach with local market insight and recruiters based in our local markets to help you build the right workforce for today and prepare for what’s next.
FAQs for Employers
Q1: If unemployment is falling, why does hiring still feel difficult?
Because the unemployment rate didn’t fall solely due to people finding work (26,000 Canadians left the labour force in November), meaning they are no longer counted as unemployed even though many still want or need work. This reduces the active talent pool, making hiring feel tighter than the headline number suggests.
On top of that, many workers are under-employed in part-time roles, meaning they’re technically “employed” but not truly available or working at their full capacity. Employers are competing for a smaller group of fully available candidates.
Finally, Canada continues to face a skills mismatch: the workers who are available don’t always have the qualifications employers need. We discussed this trend earlier in our September Labour Market Report, where we highlighted the growing gap between labour supply and employer demand.
Q2: Should employers rely on part-time talent given the rise in part-time jobs?
Part-time growth signals two realities:
- Workers want more hours or full-time roles but aren’t finding them.
- Employers are using flexible staffing to manage uncertainty.
This creates a strong opportunity: converting part-time workers into full-time, stable roles can dramatically improve retention and productivity.
Q3: Are the youth employment gains likely to last?
Not entirely. Youth hiring increased by 50,000 jobs, but many were in sectors with volatile hours (hospitality and health/social assistance). Employers looking for long-term hires should treat this as a short-term labour boost, not a structural improvement.
4. What does this mean for 2026 workforce planning?
Expect a mixed hiring environment:
- Alberta and the Atlantic provinces will see tighter competition for talent.
- Ontario and Quebec may have more available candidates but uneven skill alignment.
- Workers value stability, career paths, and skill-building (including AI literacy) more than ever. These things can differentiate employers in a market where job security is declining.