07:15 AM EST, 02/27/2026 (MT Newswires) -- Canadian payroll employment fell by 35,400 in December, the third decline in four months, said Bank of Montreal (BMO) after Thursday's Survey of Employment, Payrolls and Hours (SEPH).

This marked the first year-over-year decline (-0.2%) since the COVID-19 pandemic, noted the bank. Absent strong hiring in health care and social assistance (2.7% year over year), payrolls would have shrunk by 92,700 positions (-0.6%) -- the largest decline since the financial crisis, aside from COVID.

Manufacturing was hit hard by United States tariffs, shedding 40,600 jobs (-2.6% year over year).

Some consolation comes from a firmer household survey, stated BMO.

Combined private/public sector employment increased in the final four months of 2025 -- though it fell sharply in January -- and was up 1.4% y/y in December, including a

1.0%, or 155,300, rise outside health care and social assistance.

Job vacancies also climbed for a second straight month in December.

Still, with the vacancy rate slightly below normal, three unemployed persons are vying for each job opening, added the bank.