Work in Canada
Payroll Employment in Canada July 2025 Added 21,600 Jobs
Canada added 21,600 payroll jobs in July 2025. A modest rise. But the story under the headline matters more. Health care and social assistance led the gains. Finance and insurance followed. At the same time, job vacancies fell again, easing some labour-market pressure. This quick read breaks down what moved, why it matters, and how to plan your next steps.
Healthcare, Finance, Hospitality Up; Manufacturing and Construction Softer
Canada’s payroll employment shifted unevenly across sectors in July:
| Sector (July m/m) | Change | Notes |
| Health care & social assistance | +14,900 | Broad-based gains across 13 of 18 industries; hospitals, child day-care, and family services led. |
| Finance & insurance | +8,700 | Strength in credit intermediation and insurance carriers. |
| Accommodation & food services | +2,600 | Third monthly increase, partly offsetting late-2024 to early-2025 declines. |
| Manufacturing | −4,600 | Ongoing slide since January; transportation equipment, machinery, chemicals down. |
| Construction | −2,200 | Second monthly dip; specialty trades and residential building weaker. |
Zoom out: since January 2025, total payroll employment is little changed (−15,500; −0.1%). In other words, stable overall, with sector churn underneath.
Job Vacancies: Fewer Openings, Easier Hiring Conditions
- Vacancies fell by 20,600 to 469,900 in July; the vacancy rate slipped to 2.6%.
- There were 3.3 unemployed persons per vacancy, the highest ratio since January 2017 outside the pandemic years.
- Year over year, vacancies dropped −14.5%.
These shifts point to cooler recruiting pressure and a more balanced market for employers and applicants.
Where the openings are (vacancy rate, seasonally adjusted):
- Other services: 4.1%
- Accommodation & food: 3.8%
- Health care & social assistance: 3.7%
- Educational services: 1.1% (lowest)
- Utilities: 1.3%
- Management of companies: 1.4%
Provincial highlights: vacancy rates were highest in Nova Scotia (3.2%), B.C. (3.0%), and Alberta (2.9%); lowest in Newfoundland and Labrador (1.6%), Ontario (2.4%), and Quebec (2.6%).
Earnings and Hours
- Average weekly earnings rose 3.3% y/y to $1,308 in July.
- Month over month, earnings were +0.6%.
- Average weekly hours held near 33.3, down 0.6% y/y.
Takeaway: wage growth is positive, while hours remain stable, consistent with a labour market that’s easing but still resilient.
Sector Signals to Watch (next 1–2 quarters)
Health Care & Social Assistance
- Persistent demand, continued hiring plans, and a long-run upward trend since late 2022.
- Opportunities for internationally trained talent, especially in hospitals and community care.
Finance & Insurance
- Strength tied to credit activity and insurance operations; white-collar roles remain active.
Accommodation & Food Services
- Gradual recovery continues; gains since May help offset prior declines. Seasonal planning still matters.
Manufacturing
- Ongoing payroll decline through most subsectors since January; monitor transportation equipment and parts.
Construction
- Second monthly drop; softness aligned with slower residential activity and specialty trades.
What this Means for Applicants and Employers
- Applicants: Fewer vacancies, but clearer signals. Health care and finance are warm. Target roles where vacancy rates remain above average.
- Employers: Candidate pools are improving. Use this window to hire for hard-to-fill roles and prepare for Q4–Q1 budget cycles.
- Students and work-permit holders: Align program choices with sectors showing durable demand (health care, certain services).
Payroll Employment in Canada July 2025 Points to Cautious Momentum
The latest release shows steady payroll employment in Canada in July 2025, with health care and finance offsetting softness in manufacturing and construction. Fewer vacancies and a higher unemployed-to-vacancy ratio suggest easier hiring and more choice for employers. For newcomers and Canadian workers alike, the outlook is balanced: plan moves where demand is firm and growth is durable
