Canada’s Labor Market Nearly Fully Recovers with Job Surge in September

Maple News reports that Canada’s job market made significant strides in September, adding 157,000 jobs and bringing the national employment rate close to pre-pandemic levels. According to Statistics Canada’s Labour Force Survey for the week of September 12–18, the employment rate reached 60.9%, just 0.9 percentage points below February 2020 figures. The steady momentum reflects strong overall recovery despite population growth during the pandemic.

Unemployment dropped for the fourth straight month, falling to 6.9%—the lowest rate seen since pandemic-related disruptions began in early 2020. This consistent decline signals renewed optimism in Canada’s economic landscape.

Employment gains were particularly notable among very recent immigrants, with their employment rate climbing to 71%—the highest level recorded in this category throughout the pandemic. While the overall number of newcomers has remained stable, their growing presence in resilient sectors like professional, scientific, and technical services, as well as finance and real estate, has contributed to this upward trend.

Immigrants who have lived in Canada for five years or more experienced an employment rate close to 59%, slightly below their 2019 level. In contrast, Canadian-born workers recorded approximately 61% employment, down about two percentage points compared to pre-pandemic times.

The service-producing sector reached a key milestone by surpassing its pre-COVID employment levels. Most of the growth was driven by industries such as public administration, information and cultural services, and professional, scientific, and technical roles. These so-called white-collar fields have seen sustained employment strength throughout the health crisis.

Meanwhile, blue-collar and goods-producing sectors have yet to fully recover, reflecting an uneven rebound across different segments of the economy. However, ongoing recovery efforts, boosted by public health policy adjustments including proof-of-vaccination mandates, are helping to drive business confidence and reopen stalled sectors.

Maple News will continue to monitor Canada’s evolving labor market, especially in the context of immigration and workforce integration—a crucial component of the country’s post-pandemic recovery strategy.

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