‘Data for Business’ is an effort of the Langley Chamber, in partnership with the Canadian Chamber’s Business Data Lab, to bring our members reports, stats, and analysis on economic and business data to help inform business and investment decisions. Read our latest update below:

Canada’s economy continues to face mounting challenges, as highlighted by recent GDP data, and the November jobs report, which helped pave the way for a significant interest rate cut by the Bank of Canada this week. Together, these factors illustrate the difficult path ahead for growth, employment, and economic performance as we head into 2025.

Sluggish GDP Growth Raises Concerns
Canada’s economy grew by just 1.0% annualized in the third quarter, slightly below the Bank of Canada’s forecast of 1.5%. Government and household spending drove growth, while business investment and international trade lagged.

Stephen Tapp, Chief Economist at the Canadian Chamber of Commerce, noted, “The big picture story is that Canada’s economy continues to underperform its peers and its own potential.”
Real GDP per capita declined for the sixth consecutive quarter, reflecting growing economic strain. With looming risks like potential U.S. tariffs and scaled-back immigration targets, the outlook for 2025 remains uncertain. These factors strengthen the case for continued monetary easing to support economic activity.

Employment Struggles Despite Gains
November’s labour force data showed mixed signals. While Canada added 50,000 jobs, unemployment rose to 6.8%—the highest level outside of the pandemic in nearly eight years. Employment growth lagged far behind labour force growth, with rising joblessness seen across several key metropolitan areas.

Gains were seen in wholesale and retail trade (+39K; +1.3%), construction (+18K; +1.2%), professional, scientific and technical services (+17K; +0.9%), educational services (+15K; +1.0%), and accommodation and food services (+15K; +1.3%). There were also declines in other industries, such as manufacturing (-29K; -1.6%), transportation and warehousing (-19K; -1.7%) and natural resources (-6.3K; -1.8%).

Bank of Canada Steps In with Larger Rate Cut
Amid these economic challenges, the Bank of Canada announced a larger-than-usual 50-basis-point cut to its policy rate, bringing it to 3.25%. This decision was widely expected following the recent jobs report and reflects a growing need to remove restrictive monetary policies.

“With today’s larger-than-usual rate cut, the Bank of Canada made the right call and took its foot off the brake,” said Stephen Tapp. Inflation is now at 2%, within the Bank’s target range, but ongoing economic underperformance and downside risks justify a more accommodative stance.

As borrowing costs ease, Canadian businesses and households are expected to see short-term relief. However, significant economic risks remain, including potential tariff disruptions and slowing population growth due to stricter immigration policies.

Looking Ahead
These recent developments underline softness in Canada’s economic performance. Policymakers and businesses alike will need to stay agile as we navigate these uncertain times. The Langley Chamber will continue to monitor these economic indicators and advocate for strategies to support businesses and communities locally, provincially, and nationally.