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Canada's Better-Than-Expected Jobs Report Supports End of Central Bank Easing Cycle, Says CIBC

BY MT Newswires | ECONOMIC | 08:56 AM EST

08:56 AM EST, 12/05/2025 (MT Newswires) -- The Canadian labor market continued an impressive streak of hiring in November, with 54,000 jobs added and the unemployment rate falling sharply to 6.5%, said CIBC after Friday's Labour Force Survey (LFS).

The composition wasn't quite as strong as the headline, with all of the jobs created coming in part-time positions (up 63,000) and the decline in unemployment rate somewhat flattered by a decline in participation, noted the bank.

By age, young people of 15-24 saw the bulk of the employment gains, with prime-aged (25-54) employment holding broadly steady, while health care (up 45,000) drove most of the job gains by sector.

That said, the report was still clearly much better than expected, and in contrast to the still much weaker trend shown by the SEPH employment data, added CIBC.

While the bank doubts that the labor market is quite as strong as Friday's headline data suggests, given the somewhat concentrated job gains and decline in participation that flattered the unemployment rate, Friday's LFS is still supportive of CIBC's assumption that the Bank of Canada's rate-cutting cycle has ended.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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