Maple News reports that Canada’s national unemployment rate climbed to 5.8% in November 2023 — its fifth consecutive monthly increase — even as total employment remained virtually unchanged. According to the latest Labour Force Survey (LFS) by Statistics Canada, equal numbers of job gains and losses have offset each other, masking deeper structural challenges in the job market.
Employment growth was seen in construction (+16,000 jobs) and manufacturing (+28,000 jobs), reflecting ongoing infrastructure and industrial activity. However, these gains were counterbalanced by significant losses in wholesale and retail trade (-27,000 jobs) and in finance, insurance, real estate, rental, and leasing sectors (-18,000 jobs). The latter, in particular, has suffered consistent declines since spring, now making up one of the year’s hardest-hit industries.
Despite these fluctuations, the total number of jobs added in Canada in 2023 stands at approximately 499,000 — a year-over-year increase of 2.5%. However, not all sectors have shared this growth. Construction, finance, wholesale and retail trade, and business support services all reported lower employment levels in November than they had at the start of the year, a sign that labour market imbalances persist.
The rising unemployment rate also coincides with Canada’s rapidly growing population. By mid-2023, the country added nearly 800,000 new residents, largely due to immigration, following the 1.05 million added in 2022. Immigration, particularly through economic streams, continues to be Canada’s chief strategy to offset aging demographics and fill labour shortages.
Yet, Maple News notes, many newcomers continue to face difficulties integrating into the labour market. Credential mismatches, lack of Canadian work experience, and challenges in navigating regulatory barriers hinder their ability to join the workforce in alignment with their skills. As a result, even as immigrants are expected to fuel labour force growth, their immediate impact remains subdued in certain key sectors.
One of the more pressing questions is why unemployment continues to rise despite this influx of job-ready talent. Experts suggest that underlying mismatches between workforce skills and sectoral demands — particularly in areas like construction and financial services — are preventing the efficient absorption of new workers.
With ambitious immigration targets in place, including 485,000 new permanent residents set for 2023, Canada’s economy faces both an opportunity and a challenge. Immigration will likely remain a long-term solution to labour shortages, but ensuring smoother transitions for new arrivals into employment is crucial.
The November job numbers highlight the need for targeted workforce development, better newcomer integration programs, and sector-specific training initiatives that could help align the country’s growing workforce with its evolving economic demands.