07:42 AM EST, 12/09/2025 (MT Newswires) -- Canada released the Labour Force Survey (LFS) on Friday, and, with roughly 53,000 jobs added in November, the figures were positive once again, said Commerzbank.

As in the previous month, economists surveyed by Bloomberg had expected a slight decline in employment, only to be disappointed once again, wrote the bank in a note on Monday. Over the past three months, the Canadian economy has created roughly 180,000 jobs, following several months of weak performance.

Economists had also expected the unemployment rate to rise slightly to 7%, but it declined significantly to 6.5%. This is partly due to the lower-than-expected participation rate, but also because the labor supply has been growing more slowly for several months, pointed out Commerzbank.

Following the pandemic, there were enormous increases in labor supply, but a shift in policy toward stricter immigration rules has normalized this situation, stated Commerzbank. Consequently, stronger job growth is reflected more quickly in a lower unemployment rate than in 2023/24.

Unsurprisingly, the Canadian dollar (CAD or loonie) benefited significantly from these figures, added the bank. After three months of such positive surprises, it's becoming increasingly difficult to consider this an outlier.

Rather, the labor market seems to be indicating that the United States tariff shock has been absorbed. It's also helpful that the 10 percentage points increase in U.S. tariffs, announced by President Donald Trump following a TV advertisement by the Canadian province of Ontario, hasn't yet been implemented.

Before the Bank of Canada's latest decision in response to the initial positive labor market report, Commerzbank advocated a wait-and-see stance, but at that time, the BoC opted for another interest rate cut.

However, for the next meeting on Wednesday, there are many indications that interest rates will remain at 2.25%. Decision-makers may even signal that the key interest rate is likely to remain unchanged for the foreseeable future. In such a scenario, the Canadian dollar could strengthen again, even though expectations of interest rate hikes in the coming year are already looking "optimistic," according to the bank.