In line with Statistics Canada, the economic system added 1,100 jobs in February. Many economists had been predicting a web achieve of 20,000 jobs. February’s numbers are far under the roles added in January. This lack of progress within the Canadian job market comes after three months of huge job progress in:
- January 2025: 76,000 jobs (+0.4%)
- December 2024: 91,000 jobs (+0.4%)
- November 2024: 44,000 jobs (+0.2% achieve).
That quantities to 211,000 jobs or a 1% achieve throughout these three months.
Statistics Canada reported 387,000 extra individuals labored within the Canadian job market, a 1.8% year-over-year improve from February 2024.
Canadian Job Market Report Stronger Than It Seems
Derek Holt, Scotiabank’s vp and head of capital markets economics, says the outcomes of February’s Canada job market report are deceptive. “Canada’s job market was significantly stronger than the flat headline employment change (1,100 jobs) instructed,” stated Holt.
“Moreover, climate performed a big function in damping down jobs, hours, and the labour pool,” stated Holt. He added that an especially snowy February doubtless held again job progress in sectors similar to eating places and bars, data/tradition/recreation, and development that are delicate to Canada’s winter climate.
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Tariffs Create Extra Financial Uncertainty
U.S. President Donald Trump’s tariffs on sure Canadian items kicked in on March 4. Lots of them have already been scaled again or eliminated. Nonetheless, the tariffs have created financial uncertainty in Canada.
U.S. Tariffs Might Disrupt the Job Market
In line with the newest Statistics Canada report, annual inflation was 1.9% in January (up from 1.8% in December), and specialists forecast that it’s unlikely to rise a lot larger within the quick time period. Nonetheless, the Financial institution of Canada has warned that the rising tariff battle with the USA will trigger financial injury to Canada similar to job losses attributable to layoffs.
What influence tariffs could have within the quick and long run on the job market or when the commerce points shall be over stays to be seen. Newcomers have to comply with this essential subject.
Three components driving Canada’s current regular job progress have been decrease inflation, rates of interest, and a big drop in worldwide college students and non permanent overseas employees.
On March 12, the Financial institution of Canada minimize its rate of interest to 2.75% from 3.0%, its seventh consecutive minimize. Many economists predict there shall be extra cuts in 2025, affecting each job creation and the price of dwelling.
Modifications within the Canadian Job Market by Sector
In line with Statistics Canada, the nation’s manufacturing business, which led job good points in January, shrunk by 4,800 positions in February. Nonetheless, Ontario, the most well-liked touchdown spot for newcomers, bucked the job loss pattern by including 10,800 manufacturing jobs in February, nearly an identical to January’s good points.
These sectors noticed wholesome job good points in February:
- Wholesale and Retail Commerce in February (51,000+)
- Finance, Insurance coverage, Actual Property, Rental and Leasing (16,000+)
- Lodging and Meals Providers (4,000+)
- Public Administration (4,000+)
- Enterprise, Constructing and Different Help Providers (3,500+).
The transportation and warehousing sector noticed a lack of 23,000 jobs in February. This follows massive good points of 23,000 jobs in December and 13,000 in January. 12 months-over-year employment on this sector was down 29,000 jobs.
The skilled, scientific and technical companies sector misplaced 33,000 jobs, following upward hiring from July 2023 to November 2024. The development sector misplaced 5,000 jobs (-0.3%).
| SECTOR | % CHANGE JANUARY TO FEBRUARY 2025 |
|---|---|
| Agriculture | -0.5 |
| Pure Assets | -0.2 |
| Utilities | -5.0 |
| Building | -0.3 |
| Manufacturing | -0.3 |
| Wholesale and Retail Commerce | 1.7 |
| Transportation & Warehousing | -2.1 |
| Finance, Insurance coverage, Actual Property, Rental & Leasing | 1.1 |
| Skilled, Scientific and Technical Providers | -1.6 |
| Enterprise, Constructing & Different Help Providers | 0.5 |
| Academic Providers | 0.1 |
| Well being Care & Social Help | 0.4 |
| Info, Tradition & Recreation | 0.4 |
| Lodging & Meals Providers | -1.3 |
| Different Providers (Besides Public Administration) | -0.4 |
February Unemployment Charges Throughout Canada
The unemployment fee is a measure to know the economic system’s well being and the job market.
The most recent job market report statistics reveal a lack of 19,700 full-time roles in February, offset by a achieve of 20,800 part-time jobs.
Unemployment in February fell in Ontario to 7.3% from 7.6%, which continues to be above the nationwide fee of 6.6%. Unemployment rose in New Brunswick, Nova Scotia, and Prince Edward Island however remained unchanged from January in Manitoba, Saskatchewan, Alberta, and British Columbia.
| CITY AND PROVINCE | UNEMPLOYMENT RATE FEBRUARY 2025 % (JANUARY 2025 %) |
|---|---|
| CANADA | 6.6 (6.6) |
| Barrie, Ontario | 5.6 (5.8) |
| Calgary, Alberta | 7.3 (7.7) |
| Edmonton, Alberta | 7.1 (7.2) |
| Halifax, Nova Scotia | 5.0 (5.0) |
| Hamilton, Ontario | 7.4 (7.5) |
| Kitchener- Cambridge-Waterloo, Ontario | 8.3 (8.0) |
| London, Ontario | 6.6 (7.0) |
| Ottawa, Ontario | 5.5 (5.8) |
| Regina, Saskatchewan | 7.2 (7.0) |
| Saskatoon, Saskatchewan | 4.7 (4.8) |
| Sudbury, Ontario | 6.0 (5.9) |
| Toronto, Ontario | 8.6 (8.8) |
| Vancouver, British Columbia | 6.8 (6.6) |
| Windsor, Ontario | 9.4 (9.1) |
| Winnipeg, Manitoba | 6.2 (6.3) |
Different Highlights from the Canada Job Market Report
- Ontario led the way in which in job creation, adopted by Manitoba and Saskatchewan
- British Columbia misplaced 4,900 jobs
- The unemployment fee for males (age 25 plus) was 5.8%, up from 5.6% in January
- The unemployment fee for ladies (age 25 plus) was 5.3%, down from 5.4% in January
- Employment grew by 27,000 (+0.4%) amongst ladies within the core-age group (25 to 54 years outdated)
- Three in 10 employees ages 18-64 stated they might be prepared to maneuver to a different province for an appropriate job
- The labour drive (the entire variety of individuals employed and unemployed) shrank by 16,800, the best drop since June 2022.
Immigration and What it Means for Canada’s Job Market
In 2024 Immigration, Refugees and Citizenship Canada (IRCC) created new immigration targets for 2025 – 2027. The brand new plan lowers targets to cut back strain on housing provide and different companies. The targets apply throughout all everlasting residence classes. Canada has additionally minimize 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 federal government hopes 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.
With a quickly altering job market, it’s important to contemplate how modifications will have an effect on job prospects in your particular business and occupation.
Outlook for the Canadian Job Market
Economists are unsure in regards to the Canadian job market heading into the spring and summer time if the commerce battle with the USA doesn’t finish quickly or grows. Wanting forward, Scotiabank’s Derek Holt advises newcomers to disregard February’s report.
“There must be way more focus upon forward-looking debates,” stated Holt, “like whether or not U.S. commerce coverage will come to its senses and the way which will have an effect on pattern job progress going ahead.”
It’s doubtless that Canada, with Mark Carney as the brand new Liberal Celebration Prime Minister, will maintain a federal election in April or Might. This may increasingly additionally influence the financial path and job market.
Canada Job Market Report Abstract
Understanding job market developments is significant for newcomers who wish to proceed their careers in Canada. The static job market in February displays financial uncertainty over tariffs and harsh climate in Canada’s key provinces and areas.
Persevering with low inflation and falling rates of interest point out a resilient economic system regardless of uncertainty. Employment charges stay steady within the essential 25-54-year-old age group, and common hourly wages amongst workers had been up 3.8% (up $1.32 to $36.14) year-over-year in February.
Researching job prospects in your career in Canada is the important thing to your success. It’s going to make it simpler to proceed your profession if there’s a robust outlook in your career.
Hire costs, demand, and homebuying prices are falling throughout Canada, together with in cities like Toronto and Vancouver. That is additionally excellent news for the Canadian economic system and newcomers. Selecting a vacation spot metropolis with reasonably priced housing choices and powerful job prospects will lay the muse for monetary success.
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
