The city's unemployment rate fell from 6.8 per cent in November to 6.1 in December, but that's because it's labour force declined from 69,200 to 68,3000.
Toronto-Dominion Bank, Bank of Nova Scotia, Royal Bank of Canada and the Canadian Imperial Bank of Commerce changed their forecasts after a Statistics Canada report Friday showed the unemployment rate unexpectedly fell to 5.7 per cent in December, from 5.9 per cent the previous month, on the strength of 78,600 new jobs.
The Canadian economy added a net 78,600 jobs in December on a seasonally adjusted basis, Statistics Canada said Friday, which almost matched the previous month's employment gain of 79,500.
Looking at 2017 as a whole, employment rose 2.3 per cent for its fastest growth rate in 15 years.
The region finished the year with 4.6 per cent unemployment in December, down from 10.5 per cent at the end of 2016 and the start of the year, according to Statistic Canada's Labour Force Survey released January 5. But analysts say the central bank is likely to wait for some uncertainties to clear before raising rates.More news: Titans rule out RB DeMarco Murray (knee) against Chiefs
More news: Caitlyn Jenner accuses Kardashian clan of 'leaking stories' to the press
More news: Industry responds to coffee cups report
In December 2016, the unemployment rate was 6.9 per cent, the report said. Its benchmark interest rate sits at 1 percent.
A report showing that the USA economy created more private-sector jobs than expected last month lent some support to the US dollar.
The December reading marked the 13th-straight month of job gains, however, about half of those positive numbers were within the survey's margin of error.
Employment continued to grow across the country last month, plunging the national unemployment rate to the lowest number in 40 years.
In separate data, Canada's trade deficit in November widened to C$2.54 billion as both exports and imports benefited from increased activity in the automotive industry.