Statistics Canada released the labour market data on Friday. Canada's unemployment rate remained unchanged at 7.1% in December, in line with expectations.
The labour participation rate rose to 65.9% in December from 65.8% in November.
The Bank of Canada monitors closely the labour participation rate.
The number of employed people climbed by 22,800 jobs in December, exceeding expectations for a rise of 10,000 jobs, after a 35,700 decrease in November.
The increase was driven by a rise in part-time work. Full-time employment was down by 6,400 in December, while part-time employment increased by 38,400 jobs.