Canada’s Labour Market Adds 21200 Jobs as Hiring Slows Across Key Sectors

Canada’s labour market showed mixed momentum in October as payroll employment increased by 21,200 positions, reversing the decline recorded in September. New data released by Statistics Canada points to modest job growth alongside a sharp drop in job vacancies, highlighting a labour market that is stabilizing but becoming more competitive for workers.

According to the Survey of Employment, Payrolls and Hours, payroll employment rose by 0.1 percent in October, offsetting the 24,300 job losses seen a month earlier. On a year-over-year basis, payroll employment was up 68,300 positions, reflecting slow but continued expansion in the Canadian workforce.

Healthcare Leads Payroll Growth

Healthcare and social assistance accounted for nearly half of October’s employment gains, adding 10,300 jobs. This sector has shown steady growth since 2022 as population aging, healthcare staffing shortages, and expanded public services continue to drive hiring.

Finance and insurance followed with 5,500 new jobs, marking the fourth consecutive month of growth. Public administration also recorded gains, adding 5,100 positions, while transportation and warehousing contributed 4,700 jobs, supported by increased logistics and transit activity.

These gains were partially offset by losses in several industries. Administrative and support services shed 5,200 jobs, retail trade declined by 2,000 positions, and professional, scientific, and technical services saw a modest contraction.

Job Vacancies Fall to Lowest Level Since 2017

While employment rose, job vacancies declined sharply. The number of open positions fell by 19,100, bringing total vacancies down to 467,000, the lowest level recorded since 2017. On a year-over-year basis, vacancies dropped by more than 65,000, reflecting slower hiring intentions among employers.

The national job vacancy rate declined to 2.6 percent, down from 2.7 percent in September and well below levels seen in 2024. Healthcare, transportation, and agriculture recorded the largest year-over-year declines in vacancy rates, suggesting easing labour shortages in sectors that previously struggled to recruit workers.

Wages Continue to Rise, But at a Slower Pace

Average weekly earnings increased to $1,312, representing a 2.2 percent rise compared to October of the previous year. While wages continue to grow, the pace has slowed compared to earlier months, reflecting cooler labour demand.

Average weekly hours worked edged down slightly to 33.3 hours, continuing a gradual decline seen over the past year. This trend suggests employers may be managing labour costs by limiting hours rather than expanding headcounts.

What This Means for Newcomers and Workers

For immigrants and newcomers to Canada, the data signals a more competitive hiring environment. With fewer job openings available, candidates may face longer job searches, especially in sectors experiencing employment declines.

At the same time, steady growth in healthcare, public administration, and transportation continues to offer opportunities for workers with in-demand skills, certifications, and Canadian experience. Canada’s labour market added 21,200 jobs in October, but falling job vacancies signal a shift toward slower hiring and tighter competition. While wage growth remains positive and healthcare continues to expand, fewer openings across many sectors suggest that workers and newcomers alike may need to adapt to a changing employment landscape as economic conditions stabilize.