Canada Faces Critical Labour Gaps in Health Care and Hospitality Sectors

Maple News reports a significant uptick in job vacancies across Canada, especially in essential sectors like health care, food services, and retail, as the country continues to recover from the pandemic’s economic shocks.

Data from May shows Canadian employers were actively recruiting for approximately 671,100 positions. The health care and social assistance sector once again topped the list with an estimated 107,300 job openings—marking the seventh straight month it held the highest number of vacancies. This accounts for nearly one in six of all unfilled roles nationwide.

The accommodation and food services industry followed, with around 78,000 vacant roles, reflecting both post-lockdown recovery and a lack of returning staff. Retail stood close behind, posting 73,800 vacancies. The accommodation and food services sector also experienced the highest vacancy rate at 7.8%, likely influenced by summer hiring trends and employer struggles to rehire workers after extended shutdowns.

Provinces varied widely in their vacancy rates. Quebec led with a 5.1% rate, closely followed by British Columbia at 5% and New Brunswick at 4.9%. Newfoundland and Labrador registered the lowest vacancy rate at just 2.8%, highlighting regional differences in labour demand.

Employers in the food service industry have faced unique recruitment hurdles. Many former employees have shifted careers or cited health concerns for not returning, and the absence of international students—who often fill part-time roles in restaurants and cafes—has deepened the labour gap.

By June, as restrictions eased, employment levels in accommodation and food services increased by nearly 12% month-over-month. However, updated job vacancy data for that period remains unavailable.

Looking ahead, labour shortages may intensify. According to a recent analysis by a Canadian economist, retirements and voluntary job exits—both of which had slowed during the pandemic—are expected to rise significantly in the coming months. As a result, workforce participation could decline just as demand grows.

This demographic and economic squeeze underscores a key reality: immigration will be central to Canada’s labour force growth. Maple News emphasizes that filling these persistent job vacancies, particularly in sectors like health care, will require strategic immigration policies and faster pathways for skilled newcomers.

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