Canada’s Job Market Tightens in 2025: What Newcomers Need to Know

Maple News reports that Canada saw a noticeable slowdown in job vacancies during the first quarter of 2025, according to recent data from Statistics Canada. The number of unfilled jobs dropped by 20,600 compared to the same period last year, bringing total vacancies down to 524,300 – an 18.1% decline. This reduced the national job vacancy rate to 2.9%, aligning closely with pre-pandemic levels and indicating a more competitive environment for job seekers, especially newcomers.

Despite this decline, demand for labour remains strong in specific sectors such as health care and resource-based industries. Health occupations continue to record high vacancy numbers, with over 75,000 open roles, particularly for registered nurses and personal support workers. However, these positions also experienced a decline from previous levels, reflecting both heightened competition and workforce fluctuations.

Sales and service roles, while still representing the largest proportion of job vacancies at 28.3%, have seen their lowest figures since 2016. Similarly, trades and transport positions – including truck drivers and construction helpers – showed significant drops. Overall, six key occupational categories posted reductions, highlighting a broader cooling across the employment landscape.

Wages in Canada are rising but at a slower pace. The average hourly wage offered increased by 6.1% year-over-year to $28.90. Higher-paying positions remain concentrated in senior management and specialized sectors, with jobs requiring a university degree offering average wages exceeding $43 per hour — nearly double that of roles requiring only a high school education.

The job market is also becoming more education-sensitive. Positions requiring high school education or less saw the sharpest drop, with over 66,000 fewer openings in early 2025. Simultaneously, jobs that require a bachelor’s degree or higher have become more competitive, with 5.1 unemployed people per vacancy – up from 3.7 the previous year.

Regionally, five provinces and one territory saw reductions in job vacancies. Quebec, British Columbia, and Alberta experienced the steepest declines, followed by New Brunswick, Manitoba, and the Northwest Territories. However, exceptions exist in areas like Northwestern Ontario and parts of Quebec, where job openings have increased.

What does this mean for immigrants? While it may be harder to secure employment due to increased competition, opportunities still exist – particularly in essential sectors such as health care, logistics, and skilled trades. Strategic job targeting and upgrading qualifications can make a significant difference in the current market.

For prospective immigrants and newcomers, understanding where the demand is, adjusting expectations, and aligning skills with market needs will be key to success. Focusing on high-demand regions and occupations, combined with Canadian credentials or recognized international experience, will enhance employability.

In short, Canada’s labour market is shifting toward a post-pandemic balance, favouring skilled, educated, and well-prepared candidates. While this poses challenges, it also opens doors for those who bring the right expertise and a proactive approach.

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