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Canada Payroll Employment Trends Show Mixed Signals Amid Labour Market Shift
If you’re planning to live and work in Canada, now’s the time to watch the labour market closely. The latest data for May 2025 offers a deeper look into the job scene, and it’s full of surprises. From rising jobs in healthcare and retail to falling vacancies and shifts in wages, the current picture tells us more than numbers.
It tells the story of where opportunities are growing—and where they’re slowing down. In this blog, we’ll break down the Canada payroll employment trends, reveal what industries are gaining momentum, and help you better understand where your skills might be needed in the coming months.
Payroll Employment Inches Up—But Job Vacancies Drop Again
Canada added 15,300 new payroll jobs in May, following a similar gain of 14,600 in April. It’s a modest bump, but any growth in today’s global climate is worth noting.
Sectors that saw the biggest gains include:
- Healthcare and Social Assistance: +6,200 jobs
- Retail Trade: +5,600 jobs
- Construction: +1,200 jobs
However, not everything is trending up. Sectors like manufacturing (-6,400), admin services (-3,500), and wholesale trade (-2,900) reported notable drops.
Here’s a quick snapshot:
| Sector | Payroll Change (May 2025) |
| Healthcare & Social Assistance | +6,200 |
| Retail Trade | +5,600 |
| Construction | +1,200 |
| Manufacturing | -6,400 |
| Admin & Support Services | -3,500 |
| Wholesale Trade | -2,900 |
Job Vacancies Hit 7-Year Low
This is the more alarming part: Canada’s job vacancies fell by 20,400 in May, reaching just 478,200—the lowest since October 2017. That’s nearly 90,000 fewer open roles than the same time last year.
- Job vacancy rate: Dropped to 2.7%
- Unemployed persons per vacancy: 3.3, the highest since 2017
- Most impacted provinces: Quebec, Alberta, and Saskatchewan
The falling demand is hitting even the previously hot sectors like construction and professional services.
Year Over Year Vacancy Change by Industry
| Industry | Vacancy Decline (YoY) |
| Health Care & Social Assistance | -27,200 (-21.4%) |
| Accommodation & Food Services | -10,300 (-16.3%) |
| Retail Trade | -9,300 (-16.7%) |
| Construction | -8,600 (-19.8%) |
Only arts, entertainment, and recreation showed growth with a modest +1,700 new vacancies.
Healthcare and Retail Still Show Promise
Despite the overall slowdown, some industries are still hiring.
Healthcare jobs have been steadily rising since 2022, adding over 236,000 roles in less than three years. Ambulatory services and nursing homes are leading this rise.
Retail trade bounced back in May after months of decline, led by:
- Building material dealers (+2,500)
- Health and personal care retailers (+2,500)
- Clothing and accessories stores (+2,000)
While department stores lost 1,800 jobs, the sector overall saw a net gain of 5,600 payroll employees.
Manufacturing and Construction: Slowdown Continues
Manufacturing continued its downward trend. Since December 2024, it has lost nearly 20,000 payroll positions, especially in:
- Transportation equipment manufacturing: -5,600
- Chemical manufacturing: -2,900
- Metal product manufacturing: -2,400
Construction did gain 1,200 roles in May, but the sector is still recovering from earlier losses. Compared to December 2024, employment remains down by 9,400 jobs.
What Do These Canada Payroll Employment Trends Mean for Newcomers?
If you’re planning to apply for Canadian immigration or work permits, these job stats can be valuable. Here’s how to use them to your advantage:
- Target high-demand sectors: Healthcare, retail, finance
- Update your resume for in-demand roles
- Stay flexible: Consider smaller provinces or emerging roles
While overall Canada payroll employment trends show modest growth, the falling job vacancies are a reality check. It’s a competitive market, but opportunities are still out there, especially for skilled professionals in healthcare, retail, and finance. If you’re serious about working or settling in Canada in 2025, being informed is your first step.
Pro Tip: Get your application reviewed by professionals before applying. Small details can make a big difference. Need help with staying ahead of the latest policy changes? Follow Canada Immigration News.
