Canada’s unemployment rate dropped to 6.5 per cent in November, Statistics Canada said on Friday, bringing the rate to a 16-month low.

The jobless rate fell several points from October’s 6.9 per cent after trending upward for most of the year, even hitting 7.1 per cent in September — a high not seen since May 2016, excluding the COVID-19 pandemic years.

Meanwhile, the economy also gained an unexpected 54,000 jobs last month, marking the third monthly increase in a row.

Most of these were part-time jobs, with the vast majority of growth coming from the private sector. The overall increase was largely driven by employment gains among young people between the ages of 15 to 24.

That group was burdened by a difficult job market through most of 2025, struggling with a stubbornly high unemployment rate that has now edged down to 12.8 per cent.

The growth was driven by several sectors, including health care and social assistance, accommodation and food services, and natural resources. But jobs were lost in wholesale and retail trade, offsetting an industry increase seen the previous month.

Alberta drew the most gains, adding 29,000 jobs last month, with New Brunswick and Manitoba adding several thousand each. Employment was unchanged in the other provinces.

On a yearly basis, average hourly wages grew 3.6 per cent, or $1.27, to $37.00 an hour.