Maple News reports that Canada’s job market held firm in October, with a net addition of 31,000 new positions and a continued decline in the unemployment rate to 6.7%—its lowest level in 20 months. This marks the fifth consecutive month of falling unemployment, signaling steady progress toward a full employment recovery.
According to Statistics Canada’s October Labour Force Survey, conducted during the week of October 10 to 16, employment trends were shaped by ongoing provincial adjustments to COVID-19 policies. With major provinces like Ontario, British Columbia, and Quebec lifting capacity limits in favour of proof-of-vaccination mandates, business activity and public engagement continued to evolve.
Employment growth was uneven across sectors. While the retail trade sector showed its first positive job growth since June, this progress was overshadowed by job losses in accommodations and food services. These hard-hit sectors are still struggling to regain their pre-pandemic footing.
The drop in the unemployment rate demonstrates that the recovery is gaining traction, but experts caution that it’s not without hurdles. Labour shortages—especially in service-oriented industries—are raising concerns about the pace and sustainability of economic recovery.
RBC senior economist Nathan Janzen pointed out that the current pool of unemployed workers is not large enough to meet hiring needs in sectors like hospitality. In contrast, high-skilled sectors such as technology and professional services are experiencing stronger recoveries, intensifying competition for talent.
Additionally, fewer workers are returning to their previous roles in critical sectors like manufacturing, retail, and food services. This trend, economists say, may reflect broader workforce shifts or a reluctance to re-enter unstable industries.
Leah Nord, senior director at the Canadian Chamber of Commerce, noted that the solution to these labour market imbalances is not straightforward. “There is no silver-bullet fix,” she said, reinforcing the challenge of filling vacancies amid changing economic dynamics.
As Canada continues its post-pandemic recovery, labour market stability will depend on how effectively policymakers and employers can address workforce shortages, particularly in sectors still lagging behind.