Market Update: Canadian economy adds jobs but unemployment rate rises – BNN Bloomberg – Full Analysis

Here are five things you need to know this morning

Canada adds jobs but unemployment rate up: The Canadian economy added jobs for a fourth straight month, but the unemployment rate rose as the number of job seekers grew the most in three years. Employment rose by 8,200 in December, the unemployment rate jumped 0.3 percentage points to 6.8 per cent. Gains were driven by an increase of 50,200 full- time jobs and growth in self-employment. Health care and social assistance added 20,800 positions, while the construction sector added 11,200 roles. Part-time employment fell by 42,000.

U.S. Supreme Court tariff watch: The U.S. Supreme Court is expected to announce a ruling this morning that could have major implications for Canada. It’s a so-called “opinion day” for the top court south of the border, and there are expectations the court will rule on the legality of U.S. President Donald Trump’s global tariffs. If the court rules against the Trump administration’s use of emergency tariff powers, the duties applied under this law would be lifted – though the administration has already signaled it would use other tools to keep the tariffs in place.

Aritzia still in fashion: Aritzia seems to have found the formula for success. The Vancouver-based clothing retailer posted higher profit in its latest quarter as well as revenue that topped expectations. Revenue jumped 43 per cent compared to the year before to just over one billion dollars. Same-store sales also saw an increase across all categories. The company says the results were driven by higher U.S. sales, digital initiatives and marketing.

Glencore – Rio Tinto deal in the works: A massive deal is brewing in the global mining industry. Glencore has confirmed it is in talks with Rio Tinto on a potential merger that would form a company worth more than US$200 billion. The news comes a little over a year after earlier talks between the two collapsed. The mining giant says both companies have been discussing a potential combination of some or all of their businesses, including an all-share takeover. Bloomberg is also reporting that Rio is open to retaining Glencore’s coal business if talks are successful. Both companies have extensive operations in Canada including an aluminum complex in Quebec, diamond mining in the North, and nickel operations in Ontario.

West Fraser writes down U.S. operations: West Fraser Timber is taking a dramatic write down in the value of its U.S. assets. The Vancouver-based company will record an impairment representing the “entire amount of goodwill associated with the company’s US lumber operations” in fourth quarter of 2025, citing “persistently challenging economic conditions.” In a statement, West Fraser says a “protracted downcycle” in the lumber industry has changed assumptions around “species- specific product pricing trends, lower demand and pricing for wood chip residuals, and the depth and duration of the current downcycle and its expected recovery.”