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The Employment Rate Rises as Canada’s Labour Force Contracts

Isabel Rice



Labour Force

The national unemployment rate decreased by 0.2% to 5.2% in the month of September. According to Statistics Canada’s Labour Force report, there are a few positive aspects of employment. But the report also shows major issues related to an aging population and a rising number of retired workers leaving the workforce.

Employment was raised in British Columbia, Manitoba, Nova Scotia, New Brunswick, Yukon, and Nunavut. Whereas there is a decline in Ontario, Ruler Edward Island, and the Northwest Regions. In addition, Canada’s+ core-aged population (25-54) shows an increase for women (+0.8%) but remains the same for men.

Furthermore, the progress in Instructional services, medical care, and social services was balanced by losses in the sector of data, culture, entertainment, transportation, warehousing, and more.
The population in Canada invests lesser time in searching for work causing a downfall of 9.7% in long-term employment. This is another sign of strong recruiting culture.
Therefore, the need to consistently address an increased number of job openings will remain a challenge to the national labor market.

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Labour Force Shrinkage

In September, there was a decrease in the total size of the workforce and participation rate by – 0.4% and 0.1%, respectively. These downfalls set trends that require a need for labor recruitment in Canada.
In the month, almost 1,000,000 individuals between 55-64 referred to retirement as their prime action. Aging people and the rising number of workers keep on choosing to retire and thus driving the country’s workforce down.

The Significance of Foreign Workers

Despite rising jobs in the Canadian labor market, the solution to a shrinking workforce will be the Canadian government’s immigration plan. The upcoming immigration level plan (2023-2025) is vital to the country’s financial development and well-being.


The government of Canada will rather hopes to address work and skills shortages in the market through its immigration programs.
Moreover, the Canadian Government will declare its immigration levels plan 2023-2025 — by November 1st.

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