Canada enters 2026 with a labour market that defies simple explanation. According to Maple News, while national employment figures remained relatively stable through late 2025, the unemployment rate climbed to 6.8%, driven not by mass layoffs but by a growing number of people entering the workforce and searching for jobs. This suggests a more competitive environment, rather than outright job scarcity.
The latest Labour Force Survey from Statistics Canada confirms a labour market that is rebalancing. Hiring picked up in the second half of 2025 after a sluggish start to the year, but variation across sectors and regions continues to create uneven opportunities. Workers, employers, and newcomers face a more complex job search landscape than in years past.
Employment trends in 2025 split into two distinct phases. From January to August, job growth stagnated and business confidence flagged amid trade uncertainties, particularly regarding U.S. exports. But from September to November, hiring resurged, adding over 180,000 jobs across Canada. December brought only a modest employment bump of 8,000, but a sharp rise in job seekers pushed the unemployment rate upwards.
Older Canadians, especially those aged 55 and over, saw the most consistent employment gains. By contrast, youth aged 15 to 24 endured significant job losses, with the unemployment rate in this age group climbing to 13.3%—among the highest outside a recessionary period. Core working-age adults (25 to 54) also saw increased unemployment, mostly due to higher participation rates, not layoffs.
Sector-wise, health care and social assistance remained standout performers, contributing 85,000 new jobs over the year and 21,000 in December alone. This reflects ongoing structural demand and continues to shape Canada’s immigration policy, which prioritizes skilled workers in regulated fields like nursing and social work. Meanwhile, industries such as accommodation, food services, and professional sectors cooled, reflecting employers’ cautious spending and a shift toward essential services.
Provincial job markets told a mixed story. Quebec showed encouraging momentum with a 16,000 job increase in December, while Alberta and Saskatchewan reported job losses but still finished the year with gains. Ontario, however, struggled with stagnating employment and a rising unemployment rate of 7.9%, highlighting sharp regional disparities.
Gig economy participation remained stable overall, with roughly 667,000 Canadians earning income through digital platforms. Yet recent immigrants were significantly more reliant on gig work—more than 8% compared to just 1.5% of Canadian-born workers. For many newcomers, these flexible jobs continue to serve as temporary income sources while they navigate the formal labour market.
Looking ahead, 2026 presents both opportunities and challenges. Employers are hiring selectively and favouring candidates with experience and credentials, especially in regulated sectors. For immigrants, this means that targeted job searches, upskilling, and positioning within growth industries like health care will be critical strategies.
Maple News reports that while Canada’s job market remains resilient, it is increasingly defined by specialization, regional variation, and competition. Newcomers and Canadian citizens alike will need to adapt swiftly to thrive in this evolving employment landscape.