Statistics Canada says the economy added 104,000 jobs in December as the unemployment rate fell slightly to 5.0 per cent.
This marks the third decline in the unemployment rate in fourth months, edging it closer to the record-low of 4.9 per cent reached in June and July.
The federal agency says the rise in employment was driven by an increase in full-time work.
The number of employees in the private sector also increased last month, with job gains made across industries.
Meanwhile, employment in the public sector held steady.
Wages continued to grow at a year-over-year pace above 5.0 per cent for the seventh consecutive month, with wages up 5.1 per cent.