The Canadian labour market saw a notable upturn in September 2025, with employment figures showing a significant increase after two months of decline. This latest data from Statistics Canada paints a picture of renewed activity, particularly in full-time work and among core-aged individuals, though some challenges persist for specific demographics and regions. Understanding these shifts is crucial for grasping the current economic landscape across the nation.
### National Employment Overview
Overall, Canada added 60,000 jobs in September, representing a 0.3% increase. This helped to largely offset the cumulative 106,000 jobs lost in July and August. The national employment rate climbed slightly by 0.1 percentage points to reach 60.6%, signaling a positive, albeit modest, recovery. The unemployment rate remained steady at 7.1%, holding its ground despite the increase in the labour force participation rate to 65.2%.
Notably, the rise in employment was driven primarily by full-time positions, which saw a boost of 106,000 jobs (+0.6%). Conversely, part-time employment experienced a dip, decreasing by 46,000 positions (-1.2%). This shift suggests a strengthening in the quality of employment opportunities available.
### Key Demographic Shifts in the Workforce
September’s job gains were concentrated within the core-aged group (25 to 54 years old). Both women and men in this demographic saw substantial increases in employment:
– **Core-aged women:** Employment rose by 76,000 (+1.2%), with their employment rate rebounding to 80.4%.
– **Core-aged men:** Employment increased by 33,000 (+0.5%), pushing their employment rate to 86.1%.
In contrast, workers aged 55 and older faced a decline, with employment falling by 44,000 (-1.0%), and their employment rate dropping to 33.6%. Youth employment (15 to 24 years old) remained largely unchanged, with their employment rate stable at 53.8%. However, the youth unemployment rate edged up to 14.7%, marking the highest level since September 2010 (excluding the pandemic years of 2020 and 2021). This was particularly pronounced among students, highlighting challenges in the student job market.
### Industry and Sector Performance
Several key industries contributed to the national employment growth, while others experienced contractions:
– **Manufacturing:** Saw a significant increase of 28,000 jobs (+1.5%), marking its first gain since January.
– **Health Care and Social Assistance:** Added 14,000 jobs (+0.5%), continuing a trend of growth.
– **Agriculture:** Experienced a robust increase of 13,000 jobs (+6.1%), the first rise since January.
– **Wholesale and Retail Trade:** Faced a decline of 21,000 jobs (-0.7%), following a period of little change.
Average hourly wages also saw a healthy year-over-year increase of 3.3%, rising by $1.17 to reach an average of $36.78.
### Provincial Labour Market Highlights
Labour market performance varied across Canada’s provinces:
– **Alberta:** Led with the largest employment gain, adding 43,000 jobs (+1.7%), and its unemployment rate fell to 7.8%.
– **New Brunswick:** Saw an increase of 4,700 jobs (+1.2%), though its unemployment rate rose to 8.1% as more people entered the workforce.
– **Manitoba:** Gained 3,900 jobs (+0.5%), but also experienced an increase in its unemployment rate to 6.2%.
– **Ontario and Quebec:** Both provinces saw little change in overall employment, with Ontario’s unemployment rate increasing to 7.9% and Quebec’s decreasing to 5.7%.
– **Newfoundland and Labrador & Prince Edward Island:** Both experienced declines in employment (-0.9% and -1.0% respectively), with PEI’s unemployment rate seeing a notable increase to 9.7%.
### Skills Mismatch and Overqualification Concerns
The Labour Force Survey also shed light on skills mismatches, particularly for core-aged workers with postsecondary education. In September 2025, 16.4% of these workers were in jobs unrelated to their education or training, a slight increase from the previous year. This issue was more pronounced among recent immigrants to Canada:
– **Recent Immigrants:** 21.2% worked in unrelated fields, often due to a lack of available jobs in their area of expertise.
– **Canadian-born Workers:** 15.2% were in unrelated fields, more often by choice.
Furthermore, the proportion of recent immigrants reporting overqualification for their roles climbed by 4.2 percentage points to 34.7% year-over-year. Many of these overqualified immigrants were concentrated in sales and service, as well as business, finance, and administration occupations.
### Conclusion
September 2025 brought a much-needed rebound to the Canadian labour market, driven by full-time job growth and strong performance in core-aged demographics and certain industries. While the national unemployment rate held steady, regional disparities and ongoing challenges with youth employment, as well as skills utilization for recent immigrants, remain key areas for consideration. These insights are vital for policymakers and employers alike as Canada continues to navigate its evolving economic landscape.
Leave a Reply