Driven by greater than expected job creation in December, Canada's unemployment rate fell back down to the 30-year low previously reached in May 2006.

In the final month of 2006 the Canadian economy contributed a net increase of 62,000 jobs, far outpacing economists' predictions of between 10,000 and 15,000. Overall for the past year Canadian employment grew by 345,000 jobs, marking the 14th consecutive year of employment increases for Canada. Buoyed by the burst of growth in December, the national unemployment rate fell to 6.1%, which matches a 30 year low. While Alberta boasts the lowest unemployment rate in the country, the late year growth occurred largely in Ontario.

With job creation far outpacing expectations, growing Canadian employers are looking outside the borders to meet their human resources needs. As 2006 saw continued increases in Canada's intake of both permanent residents and temporary foreign workers, continued growth can be expected on the strength of the job creation. Citizenship and Immigration Canada has set an increase in the target range for new permanent residents by 15,000, and new measures are in place to facilitate the hiring of temporary foreign workers. Business groups have welcomed these changes as they seek to fill vacant positions, particularly for skilled workers.