Canada’s labour market continued its recovery in August, adding 90,000 jobs and bringing national employment within 156,000 positions of its pre-pandemic benchmark set in February 2020, according to the latest Labour Force Survey. Maple News reports that this is the closest Canada has come to full job recovery since the onset of COVID-19.
The data, collected by Statistics Canada for the week of August 15–21, highlights significant progress amid eased public health restrictions and the reopening of the border to fully vaccinated U.S. tourists. These developments, particularly beneficial to the services sector, have helped stimulate activity in previously hard-hit industries.
Employment gains were primarily concentrated in service-producing industries, notably in accommodation and food services. The information, culture, and recreation sectors also posted meaningful increases, stimulated by renewed consumer activity. Meanwhile, construction recorded its first job uptick since March 2021.
Among the provinces, Ontario, Alberta, Saskatchewan, and Nova Scotia led the way in employment growth. Other provinces experienced little change. The national unemployment rate dropped to 7.1%—its lowest level since the start of the pandemic—indicating steady recovery. However, visible minorities continued to face unemployment rates relatively unchanged for the second consecutive month.
Long-term unemployment fell by nearly 7% in August, though it remains more than double pre-COVID levels, underscoring ongoing challenges for some job seekers.
A positive note emerged for new immigrants, particularly those who arrived in Canada within the past five years. Their employment rate climbed to nearly 70%, over six percentage points higher than in August 2019. This surge is partly attributed to the lower intake of new arrivals in 2020, leading to better job market integration opportunities for recent immigrants already in the country.
For immigrants living in Canada for more than five years, the employment rate stood at around 59%, down 1.5 percentage points year over year. Canadian-born workers saw a labor force participation rate of a little over 61%, reflecting a decline of more than two points from pre-pandemic levels.
Visible minority groups also showed notable employment shifts. Filipino Canadians, in particular, saw a nearly five-point increase in employment, reaching an impressive 78%, highlighting their strong participation in the job market.
As Canada continues to reopen and adapt to a post-pandemic economy, the labour market’s ongoing recovery signals growing opportunities—especially for newcomers looking to build a future in the country.