Canada Sees Strong Job Growth, But Over 1 Million Vacancies Remain Unfilled

Maple News reports that Canada’s labor market continued its steady recovery in September, adding over 91,000 new payroll positions—marking the fourth consecutive month of national employment growth. This trend reflects the country’s ongoing rebound from the economic impacts of the COVID-19 pandemic.

Payroll employment rose in eight provinces, with Ontario leading the surge by adding more than 43,000 workers. British Columbia and Quebec followed, contributing significantly to the national gain. Much of the job creation stemmed from the services-producing sector, particularly in accommodation and food services, public administration, and finance and insurance.

The re-opening of the Canada-U.S. border in August and the relaxation of international travel rules in September are also believed to have bolstered hiring in tourism-related sectors, according to Statistics Canada.

Despite this positive momentum, Canada is grappling with a critical labor shortage. At the beginning of September, the country faced over 1 million job vacancies—a record high. The accommodation and food services sector alone reported nearly 200,000 open positions, with a staggering vacancy rate of 14.4%, indicating an acute hiring challenge.

Over 50% of employers in the hospitality sector reported difficulties in finding suitable workers, compared to just 30% in other sectors. The health care and social assistance sector is also under strain, with more than 130,000 vacancies—almost double the number from the same period in 2019.

Retail trade accounted for nearly 122,000 unfilled jobs, while construction and manufacturing sectors each reported over 80,000 vacant positions. These figures highlight widespread demand for talent across Canada’s economy, as businesses struggle to keep pace with post-pandemic expansion and consumer demand.

As vacancy rates remain historically high, policymakers and employers may need to explore new strategies—including immigration and workforce training—to address these persistent labor gaps and support sustainable economic growth.

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