Newcomers want to know Canada’s job market to make it simpler to discover a job. The most recent Canada job market report for January 2025 is nice information for newcomers. Hiring was sturdy, and the unemployment price fell as job creation soared.
In response to the newest Statistics Canada job market report, unemployment fell to six.6% in January, from 6.7% in December. That’s the second straight month-to-month decline after peaking at 6.9% in November.
The Canadian job market added 76,000 jobs in January. This was greater than the 25,000 jobs most economists forecast.
Canadian Job Market “Extremely Robust”
The Canadian job market “blew the barn doorways off expectations as soon as once more,” stated Derek Holt, vice chairman and head of capital markets economics for Scotiabank.
We’ve bought an extremely sturdy job market that’s bought some critical momentum behind it,” stated Holt. The manufacturing sector added 33,000 jobs. One-third of these jobs are in Ontario, the preferred touchdown space for immigrants.
Extra excellent news for newcomers is full-time employment elevated by 35,000 jobs in January. 40,900 part-time jobs have been added, in keeping with the job market report.
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Job creation in Canada’s three massive provinces (Ontario, British Columbia, and Quebec) is on the roll. As Scotiabank’s Holt identified, Canada created 385,000 jobs in 2024, with 211,000 prior to now three months and 280,000 prior to now six months.
Personal sector jobs have been up 164,000 in 2024 and up 96,000 in January. Canada gained 177,000 within the final three months and 215,000 prior to now six months.
The slight drop within the unemployment price to six.6% was because of a rise within the labour drive by 61,000 (primarily newcomers), a lot lower than the 76,000 jobs gained.
The labour drive continues to develop very strongly, with a web improve of 225,000 prior to now three months.
Job Positive factors in Key Sectors
Along with the achieve of 33,000 jobs in manufacturing, these sectors noticed job good points in January:
- Skilled, scientific and technical companies in January (22,000+)
- Building (19,000+)
- Lodging and meals companies (15,000+)
- Transportation and warehousing (13,000+)
- Agriculture (10,000+)
In January, fewer folks have been employed in “different companies,” which incorporates private and restore companies. That sector misplaced 14,000 jobs.
Ontario added essentially the most jobs in January, with 39,000, whereas British Columbia added 23,000. New Brunswick added 2,900 jobs and noticed its unemployment price drop 1.3 share factors to 6.4%.
Looming Tariffs Might Impression the Job Market
A part of Canada’s job progress is because of decrease inflation and rates of interest.
In late January, the Financial institution of Canada lowered its rate of interest to three% from 3.25%, its sixth consecutive reduce. Many economists predict that there could also be extra cuts in 2025, affecting each job creation and the price of residing.
In response to the newest Statistics Canada report, annual inflation was 1.8% in December, and consultants predict it’s unlikely to rise a lot greater. Nonetheless, the Financial institution of Canada warns that an impending tariff struggle with america would set off financial injury in Canada, together with job loss.
In response to Andrew Grantham, senior economist at CIBC Capital Markets, although the newest job report was constructive, rates of interest nonetheless want to maneuver decrease than 3%.
“We proceed to suppose that even decrease rates of interest might be wanted for the financial system to totally take up that slack, significantly given heightened commerce uncertainty, which may impression hiring choices forward.”
Canada Job Market Report Highlights
- The general public sector misplaced 8,400 jobs in January.
- Hourly wages elevated 3.5% year-over-year in January, down from 4% progress in December.
- The typical hourly wage for personal sector employees in manufacturing was $34.80 (barely greater than the common of $33.97 for all non-public sector staff).
- Meals manufacturing accounted for 16.4% of all manufacturing jobs in January.
- The unemployment price was greater in January 2025 (6.6%) than 12 months earlier (6.1%).
- The entire variety of unemployed folks was unchanged at 1.5 million in January.
- Employment progress was concentrated amongst folks within the core working age group (25 to 54 years previous), with will increase each for ladies (36,000+) and males (28,000+) on this age group.
Adjustments within the Canadian Job Market by Sector
| INDUSTRY | % CHANGE DECEMBER TO JANUARY 2025 |
|---|---|
| Agriculture | 4.4 |
| Pure Sources | -1.6 |
| Utilities | -2.1 |
| Building | 1.2 |
| Manufacturing | 1.8 |
| Wholesale and Retail Commerce | 0.1 |
| Transportation and Warehousing | 1.2 |
| Finance, Insurance coverage, Actual Property, Rental and Leasing | -0.4 |
| Skilled, Scientific and Technical Providers | 1.1 |
| Enterprise, Constructing and Different Help Providers | -1.0 |
| Academic Providers | -0.5 |
| Well being Care and Social Help | 0.1 |
| Info, Tradition and Recreation | -0.3 |
| Lodging and Meals Providers | 1.3 |
| Different Providers (Besides Public Administration) | -1.8 |
| Public Administration | -0.3 |
Immigration and What it Means for Canada’s Job Market
In 2024, Immigration, Refugees and Citizenship Canada (IRCC) introduced new immigration targets for 2025 – 2027. The brand new plan and decrease targets intention to scale back stress on housing provide and different companies. The altering targets apply throughout all everlasting residence classes. Canada has additionally decreased the variety of non permanent overseas employees and worldwide college students it welcomes.
| YEAR | PERMANENT RESIDENCE TARGETS |
| 2025 | 395,000 (down from 500,00) |
| 2026 | 380,000 (down from 500,000) |
| 2027 | 365,000 |
The brand new plan will lead to a inhabitants decline of 0.2% in 2025 and 2026 and a rise of 0.8% in 2027.
Economists like Scotiabank’s Derek Holt predict these inhabitants progress insurance policies will impression the job market and labour drive all through 2025. The adjustments intention to shut the uneven hole between excessive inhabitants progress and job creation.
As the newest Statistics Canada report factors out, “as immigrants combine into the Canadian labour market, they typically face challenges discovering work well-aligned with their {qualifications}.”
With a quickly altering job market, it’s essential to contemplate how adjustments will have an effect on job prospects in your particular trade and occupation.
Outlook for the Canadian Job Market
Economists are optimistic concerning the Canadian job market heading into the spring if a commerce struggle with america will be prevented or minimized.
Financial institution of Montreal chief economist Douglas Porter stated, “The turnaround in job progress, even amid cooler inhabitants tendencies, reinforces the message from firmer auto and residential gross sales that the financial system was turning a nook due to the heavy-duty drop in rates of interest prior to now eight months.”
CIBC’s Andrew Grantham thinks Canada’s subsequent employment report is extra “prone to choose up an impression from latest (U.S.) commerce threats.”
At this level, it seems probably that Canada will maintain a federal election in April or Could. This will additionally impression the financial course and job market within the months forward.
January Unemployment Charges Throughout Canada
The unemployment price is a measure to know the financial system’s well being and the job market.
| CITY AND PROVINCE | JOBLESS RATE JANUARY 2025 % (DECEMBER 2024 %) |
|---|---|
| CANADA | 6.6 (6.7) |
| Barrie, Ontario | 5.8 (6.0) |
| Calgary, Alberta | 7.7 (8.1) |
| Edmonton, Alberta | 7.2 (7.5) |
| Halifax, Nova Scotia | 5.0 (5.1) |
| Hamilton, Ontario | 7.5 (7.3) |
| Kitchener- Cambridge-Waterloo, Ontario | 8.0 (7.6) |
| London, Ontario | 7.0 (7.1) |
| Ottawa, Ontario | 5.8 (5.9) |
| Regina, Saskatchewan | 7.0 (6.8) |
| Saskatoon, Saskatchewan | 4.8 (5.0) |
| Sudbury, Ontario | 5.9 (5.4) |
| Toronto, Ontario | 8.8 (8.4) |
| Vancouver, British Columbia | 6.6 (6.4) |
| Windsor, Ontario | 9.1 (8.9) |
| Winnipeg, Manitoba | 6.3 (6.2) |
Canada Job Market Report Abstract
Understanding job market tendencies is important for newcomers who need to proceed their careers in Canada. The expansion in full-time jobs in January, with low inflation and falling rates of interest, signifies a resilient financial system. Employment charges stay secure within the vital 25-54 year-old age group.
Researching job prospects on your occupation in Canada is the important thing to your success. It’s going to make it simpler to proceed your profession if there’s a sturdy outlook on your occupation.
Hire and homebuying prices are falling in cities like Toronto and Vancouver. That is additionally excellent news for the Canadian financial system and newcomers. Selecting a vacation spot metropolis with reasonably priced housing choices and robust job prospects will lay the inspiration for monetary success.
Sources:
Statistics Canada, Scotiabank Economics, Canadian Press, Globe and Mail, Financial institution of Canada
WRITTEN BY
Steve Tustin
Senior Editor, Put together for Canada
Steve Tustin is the Editor for Leases for Newcomers and a contributing editor for Put together for Canada. He’s additionally the previous managing editor of Storeys.com and a former senior editor on the Globe and Mail and the Toronto Star.
© Put together for Canada 2025
