Canada’s labour market lost some momentum in December 2025, with employment barely changing – only 8,200 net new jobs were added – after three months of stronger gains earlier in the fall. At the same time, the unemployment rate rose to 6.8 per cent from 6.5 per cent in November, because more people entered the labour force looking for work. Most of the job additions were in full-time work, with part-time employment declining slightly. The employment rate stayed around 60.9 p

The Bank of Canada has reduced its benchmark interest rate by 25 basis points , bringing it to 2.25% . The decision reflects continued weakness in Canada’s economy, with GDP contracting 1.6% in the second quarter, and inflation moving closer to the Bank’s 2% target. Governor Tiff Macklem stated that the rate cut aims to provide modest support to households and businesses amid softening economic activity. However, he emphasized that this may mark the final cut in the current

Prime Minister Mark Carney has set an ambitious goal for Canada: to double its non-U.S. exports within the next decade . The move signals a sharp shift in the country’s trade priorities, as Carney argues that Canada can no longer rely so heavily on the United States as its primary market. Currently, over 75 percent of Canadian exports go to the U.S. , a dependence Carney now calls a “vulnerability.” Rising trade tensions and recurring tariffs on key sectors such as steel, lum