Canada Job Market Trends & Insights 2025

Canada added 67,000 jobs in October 2025. The unemployment rate dropped to 6.9% and the employment rate went up to 60.8%. This shows the job market is slowing but stable.

This report uses data from Statistics Canada and insights from RBC economists Claire Fan and Nathan Janzen. It gives a detailed look at the job market in late 2025. It covers national, sector, and regional trends, helping you understand hiring plans and job prospects.

Services-producing industries are leading the way, while goods-producing roles are slowing down. Wage growth is near 3% and job vacancies are around half a million. This information helps employers and job seekers make informed decisions.

Overview of the current job market in Canada and 2025 outlook

The job market in Canada is steady but slower than earlier this year. Employers are careful but keep hiring where demand is clear. This fits with broader trends showing a slowdown, not a downturn.

Those watching the Canada job market see mixed but manageable momentum. The focus has shifted to the quality of jobs, sector changes, and where hiring is strong.

Key takeaways from recent Labour Force Surveys

October saw a second monthly gain with about 67,000 jobs added, a 0.3% increase. Unemployment dropped to 6.9%, and the employment rate hit 60.8%. Over 12 months, employment rose by roughly 299,300, or 1.4%.

Ontario led with about 55,000 positions, and Newfoundland and Labrador added about 4,400. Services-producing roles advanced year to date, while goods-producing sectors lagged, reflecting earlier pressure in construction and manufacturing.

Within services, the strongest rebounds came in wholesale and retail trade, transportation and warehousing, and information, culture and recreation. These shifts align with Canadian job market trends seen across retail logistics and consumer-facing activities.

Why employment growth is slowing but resilient

Spring and summer brought tariff uncertainty and trade headwinds that weighed on manufacturers. Hiring cooled, and some months slipped, but layoffs stayed low and search times grew longer, a sign of gradual cooling.

Momentum returned in June and then faded in July and August before stabilizing in September and improving in October. This pattern suggests firms are pacing decisions while protecting teams, which supports resilience in the job market in Canada.

Population gains moderated through mid‑2025, and participation drifted from early peaks. Wage growth around 3.2%–3.4% and vacancies near 505,875 point to cautious private hiring, consistent with employment statistics in Canada.

How this roundup post helps readers navigate shifts

This piece pulls together monthly moves, sector pivots, and regional signals to help readers cut noise. It shows where hiring is stacking up, what skills are in demand, and how to plan next steps in the Canada job market.

By mapping hotspots and soft spots, the current job market in Canada becomes easier to read. Job seekers and employers can align choices with Canadian job market trends and act with more confidence.

Employment gains, losses, and sector shifts in October 2025

October saw a big change in the job market in Canada. More jobs were created in areas like retail and logistics. At the same time, jobs in areas sensitive to interest rates decreased. These changes show where new job opportunities are and where hiring has slowed.

Net employment up 67,000 (+0.3%) month over month

Employment went up by 67,000 in October. This is the second month in a row with an increase. It shows the job market is improving but not too fast.

Services-producing sectors outpaced goods-producing roles YTD

From January to October, services added 142,000 jobs. Goods-producing sectors lost 54,000 jobs. This shows demand for services is strong, while construction and some manufacturing are facing challenges.

Top gainers: wholesale and retail trade, transportation and warehousing, information, culture and recreation

Retail jobs grew a lot in October. So did jobs in transportation and warehousing as supply chains improved. The information, culture, and recreation sector also saw growth as people continued to spend on experiences.

Industries under pressure: construction, other services, education, health care, and finance-related roles

Construction jobs decreased due to higher interest rates. Health care, education, and finance jobs also saw a slowdown. These changes reflect the impact of interest rates on certain sectors, but there are opportunities for job growth in other areas.

Canada’s unemployment rate and employment rate signals

The Canadian job market showed mixed but steady signs in October. After a slow summer, things picked up, giving a clearer view for hiring managers and job seekers. The job market in Canada is slowly improving, without sudden drops, as shown in recent Canadian job market analysis.

National unemployment edged down to 6.9% in October 2025

The rate fell by 0.2 percentage points from September. This shows the Canadian job market is slowly getting better. Fewer layoffs and longer job searches suggest a gradual increase in job availability, not a sharp drop.

Employment rate rose to 60.8%, with 299,300 more employed year over year

Employment in Canada grew by 1.4% annually, despite slower growth. Hours worked have been uneven, but they match the slow output and stable job outlook in Canada.

Skilled occupations with below-average unemployment (management, tech, finance/admin, legal, customer support)

High-skill jobs are in high demand. Management, tech, finance, law, and customer support have low unemployment rates. This keeps the focus on talent shortages and the need for upskilling in the Canadian job market.

Takeaway for teams: plan targeted recruitment, monitor wage drift, and align training to close gaps that persist in the job market in Canada.

Provincial labour market in focus: regional winners and watchers

Regional shifts are changing the labor market in Canada this fall. Employers and job seekers are looking at trends and local realities. The job market in Canada is showing selective growth across provinces.

Where unemployment eased: SK, MB, ON, QC, NB, PEI, NL

October saw lower unemployment rates in several provinces. Saskatchewan’s rate fell to 5.5% (from 6.0%), and Manitoba’s to 5.8% (from 6.2%). Ontario’s rate improved to 7.6% (from 7.9%) after a soft patch in auto and trade-exposed sectors.

Quebec’s rate dropped to 5.3% (from 5.7%), and New Brunswick’s to 7.9% (from 8.1%). PEI’s rate fell to 8.5% (from 9.7%), and Newfoundland and Labrador’s to 10.1% (from 10.6%). These changes suggest stronger job prospects in Canada, where demand is high in retail, transportation, and recreation.

Where rates rose or held: BC and NS up; AB steady at 7.8%

British Columbia’s rate rose to 6.6% (from 6.4%), and Nova Scotia’s to 6.7% (from 6.2%). Alberta’s rate remained steady at 7.8%, showing balanced competition for skilled roles in energy, logistics, and services. These mixed signals highlight how sector mix and participation rates shape outcomes in each region.

Regional standouts: NWT -1.9 pts to 4.3%; PEI -1.2 pts to 8.5%

The Northwest Territories saw the sharpest monthly improvement, down 1.9 points to 4.3%. PEI’s 1.2-point drop shows rapid change on a small base. For context on mobility and selection pathways that influence Canadian job market trends, see this update on Quebec draws and pool dynamics.

Implications for job seekers and employers by province

Job seekers can align moves with improving regions like Saskatchewan, Manitoba, Quebec, and Ontario. They should track sector growth in wholesale, retail, transportation, and recreation. Employers in BC and Nova Scotia face larger applicant pools, while Alberta remains balanced. Tighter markets like Quebec and Saskatchewan may need faster hiring and flexible work to capture scarce skills.

These patterns, set against broader Canadian employment trends, help map job prospects in Canada. They guide decisions across the job market Canada. As Canadian job market trends evolve, staying nimble with credentials, training, and mobility can unlock regional opportunities in the labor market in Canada.

Public vs. private dynamics and the full-time shift

Canada’s job market is moving towards stability. Employers are focusing on full-time jobs and cutting casual hours. This shows that households and businesses are trying to avoid risks.

September context: 60,000 jobs added; unemployment steady at 7.1%

September brought a fresh start after a soft summer. About 60,000 jobs were added, keeping unemployment at 7.1%. By October, things got even better, but hiring was cautious.

Public hiring accounted for roughly half of September’s gains

Public jobs helped when private hiring slowed down. This pattern was seen earlier in 2025, during election times. It shows how public jobs can support services during tough times.

Full-time roles rose as part-time declined—workers prioritize stability

By late Q3, full-time jobs were on the rise, while part-time jobs were falling. People want stable hours, benefits, and pay. This shows that Canadians are looking for security in uncertain times.

What this means for private-sector competitiveness and retention

Private employers face challenges in areas like management, tech, finance, and administration. They need to offer more to attract and keep workers. Surveys suggest plans to add permanent jobs and improve benefits.

Wages, vacancies, and the skills mismatch

Pay gains have slowed in the Canada job market, but they’re steady. Average hourly wages have been in the low-3% range, with July at 3.3% and August at 3.2%. Average weekly earnings are near $1,307.86, showing a consistent trend.

Average hourly wages up 3.3% YoY; average weekly earnings at $1,307.86

Wage growth is near 3.3% year over year, which is softer than last year. Yet, it supports spending. Weekly earnings around $1,307.86 show modest real gains in some provinces.

Job vacancies around 505,875 amid cautious private hiring

Vacancies are near 505,875 and are easing from earlier peaks. Private employers are cautious while demand normalizes. This suggests active hiring in select fields, even with a slower pace overall.

Skills alignment challenge: overqualification among newcomers and grads

Layoffs are low, but re-employment is slow for many. Overqualification and credential barriers affect newcomers and recent graduates. Tight pockets in management, tech, finance, and more contrast with a 6.9% unemployment rate.

Actionable responses: upskilling, internal mobility, and co-op/apprenticeship paths

Employers can invest in upskilling and internal mobility. They can also offer early-career programs like co-ops and apprenticeships. Job seekers can focus on digital and analytics skills, industry-recognised certifications, and roles in logistics and more.

Opportunities and risks across industries and demographics

The job market in Canada is moving but not evenly. Employers are slowing down, and job seekers are looking for the right fit. Here, we see where the challenges are and where the doors are open.

Canadian youth summer job market decline vs. year-end trends

Statistics Canada found a big drop in summer jobs for 15- to 24-year-olds. This decline was most noticeable in July, with unemployment going up. But, by October, hiring started to pick up again.

Students and new graduates can find jobs by looking into co-ops, internships, and short courses. Jobs in retail, recreation, and transport are good starting points. Even though youth jobs are slower, there are opportunities.

Canadian tech job market decline contrasted with resilient applied sciences roles

The late summer saw a drop in tech jobs, showing a decline in the tech job market. This was mainly because of fewer jobs in software and venture-backed areas.

But, jobs in natural and applied sciences were steady, with low unemployment in key areas. Those moving into data, cybersecurity, cloud reliability, and OT/IT in manufacturing and utilities can find stable jobs.

Canadian job market for immigrants: overcoming credential and experience barriers

The job market for immigrants in Canada is tough due to recognition of credentials and experience. Even in areas like management, finance, and tech, many immigrants face underemployment.

Bridge programs, micro-credentials, and regulated paths help bridge the gap. Focusing on provinces with lower unemployment and sectors hiring can lead to job opportunities. This also helps build Canadian work experience.

Sectors with job growth in Canada: healthcare, advanced manufacturing, logistics

Logistics and advanced manufacturing saw growth due to steady demand and supply chain improvements. Transportation, wholesale and retail, and information, culture, and recreation also saw gains in late 2023.

Healthcare had a small dip in October but is expected to keep hiring due to demographic needs. For those watching the job market, these sectors are stable, even with tech and youth job challenges.

Conclusion

The Canada job market showed a moderate slowdown but remained resilient in the fall. October saw a gain of 67,000 jobs, with the unemployment rate dropping to 6.9%. The employment rate hit 60.8%, with 299,300 more people working than last year.

Services led the growth, while manufacturing and utilities stayed steady. This suggests a soft but positive job outlook in Canada. It points to steady hiring, but with careful selection.

Regional differences are key. Unemployment fell in many provinces, including Saskatchewan, Manitoba, and Ontario. But it rose in British Columbia and Nova Scotia. Alberta’s rate stayed the same.

The Northwest Territories and Prince Edward Island saw big improvements. These changes highlight how the job market varies by location and sector.

Wages and vacancies are returning to normal. Average hourly pay grew by about 3%, and weekly earnings were near $1,312. Vacancies were around 505,875, with layoffs low but job searches taking longer.

Public hiring helped balance earlier softness, while private demand stabilized. Roles in management, tech, and finance had lower unemployment. Employers, like those at Robert Half, are using hybrid work, bonuses, and better benefits to attract talent.

Looking forward, most predict cautious growth in the second half of 2025. Hiring will likely focus on services, logistics, and advanced manufacturing. For a stronger job market, employers and job seekers need to focus on skills alignment.

In short, the Canadian job market is cooler overall but competitive for in-demand roles. It offers a balanced outlook for the year ahead.