BMO Says Labor Pains Ease in Canada's Regions in Q4

12:38 PM EST, 01/12/2026 (MT Newswires) -- Canadian employment rose 128,000 in Q4 2025, following a 46,000 decline in Q3, said Bank of Montreal (BMO).

At 6.8%, the unemployment rate is just a tenth higher than a year ago. That is impressive given the many trade-related headwinds shaping the economy over that period, although they are weighing more heavily in the regions that are more directly exposed to United States trade, noted the bank.

Ontario's jobless rate rose 0.4 percentage point in the past year to 7.9% in December. Aside from Newfoundland & Labrador, that's the highest in Canada, stated BMO. While past population growth is still visible, the province's jobless rate will get a disproportionate dampening effect -- along with British Columbia -- from tighter limits on international students.

Quebec has held up better and is sporting the lowest unemployment rate (5.4%) in the country, pointed out the bank.

Alberta also posted a decent 25,000 job gain in the quarter, and year-over-year growth leads the provinces at 2.3% as of December, it added. The jobless rate stepped down a full percentage point in the last three months of the year and now matches the national average.

Trade concerns continue to show up at the city level, although differences have narrowed, according to BMO. Higher-exposed cities in Ontario, Quebec and Atlantic Canada are overrepresented in the bottom half of the rankings, although some have notably improved in the past year, including Trois-Rivieres and Sherbrooke, Quebec, and even Oshawa and Windsor in Ontario.

Still, the cities that are relatively more sheltered from tariffs, such as Calgary and Regina, remain at the top of the rankings.

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