Canada’s job market in January 2025 showed signs of recovery, with employment up by 76,000 (+0.4%), marking the third consecutive month of job growth. The national employment rate also saw a slight increase of 0.1 percentage points to 61.1%.
Manufacturing saw a strong rise, adding 33,000 jobs (+1.8%), primarily in Ontario, Quebec, and British Columbia. The professional, scientific, and technical services sector expanded, gaining 22,000 jobs (+1.1%).
Ontario led the charge with the most job gains, adding 39,000 jobs (+0.5%), marking the first increase in the employment rate for the province since June 2023. British Columbia followed closely with 23,000 new jobs (+0.8%), while New Brunswick also saw a modest increase of 2,900 jobs (+0.7%). Quebec, however, experienced little change in employment for the second consecutive month.
While the overall unemployment rate decreased to 6.6%, youth unemployment continues to be a significant challenge. Although the youth unemployment rate fell by 0.6 percentage points to 13.6%, it remains far above the national average. Unemployment rates for racialized youth have also worsened in comparison to last year, highlighting ongoing disparities in the job market.
Average hourly wages rose by 3.5% year-over-year, but this marked a slowdown from previous months, reflecting the broader cooling of wage growth. The average hourly wage stood at $35.99. On a positive note, total hours worked increased by 0.9% from December, continuing a steady rise in work hours.
Interestingly, fewer Canadians are planning to leave their jobs compared to a year ago. The job-changing rate fell to 0.4%, signaling a shift toward greater job stability. The proportion of permanent employees intending to leave their jobs in the next year also dropped from 6.9% in January 2024 to 6.1% in January 2025, suggesting that workers are finding greater security in their current positions.
The Manufacturing Sector’s Dependence on the U.S.
Canada’s manufacturing sector, which employs nearly 2 million people, remains vital to the economy; its health is closely tied to U.S. demand for Canadian exports. In January, about 40% of manufacturing jobs depended on exports to the U.S., particularly in automotive manufacturing. Despite recent job growth in manufacturing, it remains vulnerable to shifts in trade policies and international demand, posing a risk to the overall economic stability.
The employment trends of January 2025 suggest a gradual recovery, particularly in high-skill sectors and youth employment. However, challenges remain, especially in addressing youth unemployment and ensuring the manufacturing sector’s resilience in the face of changing international dynamics. As Canada continues its economic recovery, careful attention will be needed to sustain growth and navigate potential disruptions.
In conclusion, Canadians must be cautious of political leaders who use partisan slogans and inflated patriotism to further their agendas. Whether liberal or conservative, we are all united in our commitment to this country’s well-being. The United States remains Canada’s closest ally, and no political rhetoric will change that. Politicians, often insulated from the consequences of their actions, are less likely to feel the impact of potential tariffs on the economy. We must focus on issues that truly matter—like border security and tackling the fentanyl crisis, which continues to devastate communities across the country. Above all, we must protect Canada’s inclusive and kind culture, ensuring that political decisions are made with the long-term health of our nation in mind. Let’s prioritize our collective future over divisive short-term political gain.