What’s Happening in the Canadian Job Market? Mid-2025 Overview

A mid-2025 snapshot

Canada’s labour market is entering a period of structural transition. In May 2025, the unemployment rate reached 7.0 percent. This is the highest level recorded since 2016, excluding the pandemic years. The shift reflects a combination of economic pressure and evolving consumer priorities. While some sectors are scaling back hiring, others are accelerating recruitment, often for reasons that did not factor into workforce planning just a few years ago.

Job vacancies are falling, but selectively

Across many parts of the economy, job openings are declining. The technology sector, along with sales and finance, has seen a notable drop in demand. Companies in these areas are responding to tighter budgets, reduced investment, and shifting customer behaviours.

At the same time, other industries are experiencing strong or even growing demand for labour. The distinction lies in what is driving growth. In 2025, it is less about innovation and more about supply chains, domestic production and economic resilience.

What is driving demand in 2025?

A key shift is the return of local production as a strategic imperative. Ongoing trade tensions with the United States, rising costs of global shipping and increased consumer interest in Canadian-made products are changing how companies source, produce and distribute goods.

As a result, demand is growing in three core areas. First, agriculture and food processing. Farms are expanding capacity and food producers are scaling up operations to meet domestic demand. Second, manufacturing and light industrial work. Employers are hiring general labourers, machine operators and production staff at higher volumes. Third, logistics and packaging. With more goods being produced locally, the need to store, move and deliver them efficiently is creating new operational roles across Canada.

Government investment in agri-food

The Canadian government has allocated over 1 billion Canadian dollars to support the domestic agri-food sector. This funding includes direct subsidies for agricultural producers, technology upgrades to support automation and financial incentives to encourage both seasonal and permanent hiring. The aim is to strengthen national food security while reducing reliance on external supply chains.

Wage trends point to rising competition

One clear indicator of how the market is shifting is the gap between offered wages and actual wage growth. In the first half of 2025, advertised salaries in job postings have risen by 6.1 percent year over year. In contrast, overall employee wage growth is tracking at 3.6 percent. Employers are clearly willing to pay more to secure talent, especially in sectors where demand is outpacing supply.

Sector-level observations

Healthcare remains under considerable pressure. Nurse shortages are now a long-term issue, and the number of job postings has increased by over 200 percent compared to 2017. Recruiting and retaining frontline staff is a major challenge nationwide.

Finance and accounting remain relatively stable. The unemployment rate in this field is around 3.6 percent. Demand is steady for professionals who are digitally fluent and contract-ready.

Skilled trades and engineering are seeing high levels of hiring, especially in Alberta and British Columbia. Infrastructure development and energy projects are fuelling demand for electricians, civil engineers and industrial specialists.

Technology hiring has slowed significantly since its 2021–2023 peak. However, employers continue to seek experts in artificial intelligence, cloud infrastructure and systems reliability. These roles remain critical, even as broader IT spending contracts.

Key takeaways

Employers need to adapt quickly. Offering competitive salaries is essential, but not sufficient. Flexibility, clear career development paths and the ability to hire at scale are becoming just as important.

Candidates with expertise in agriculture, manufacturing, healthcare and the skilled trades are well positioned. The market is shifting in their favour, especially in regions where local production is expanding.

Local production is no longer a trend. It is a deliberate economic strategy. For Canada, that strategy is already creating new jobs, reshaping hiring needs and rebalancing where opportunity lives.

Closing thoughts

Whether you are recruiting talent or evaluating your next career step, it pays to understand where demand is rising. In 2025, Canada’s labour market is being shaped not only by economics but also by policy, geopolitics and values. For many employers and professionals, the next move may not be about reinvention but about returning to what can be built and sustained locally.