Canada’s labour market is showing signs of slowing down, with job vacancies falling to their lowest level since early 2018. Employers reported 505,900 vacant positions in the second quarter of 2025, down nearly 19,000 from the previous quarter and more than 72,000 from a year earlier.
For businesses, the decline eases the pressure of labour shortages. For job seekers, it means tougher competition and fewer options, especially for full-time, permanent roles.
Most of the drop came from full-time jobs, which fell by more than 20,000. Permanent roles also declined, while part-time and temporary positions remained largely unchanged, which ight be good news for employers trying to stabilize hiring costs, but discouraging for workers hoping for stable, long-term employment.
The total number of jobs dropped by almost 55,000 in the quarter. The job vacancy rate decreased to 2.8 percent, indicating fewer openings compared to all positions, which makes it harder for unemployed Canadians to find work, even as employers face less strain from unfilled roles.
There are now almost three unemployed people for every open job, up from just over two last year. For people with a university degree, the ratio is even higher, nearly five persons for each vacancy, highlighting a tough reality: higher education no longer guarantees easier entry into the job market. By contrast, jobs in the trades remain more balanced, with fewer than two job seekers per opening.
Six major job categories posted declines. Health care was down nearly 6,000 vacancies, continuing a year-long slide. The biggest losses were among nurses and support staff, positions that remain in high demand but are proving harder for job seekers to secure.
Trades and transport jobs also shrank, including fewer openings for construction helpers and truck drivers. The drop may ease employer concerns but also signals weaker demand in construction and transport.
The lone bright spot was in arts, culture, recreation and sport, where openings rose nearly 10 per cent. While small in number, it suggests certain creative sectors are still expanding.
Ontario and Quebec recorded the largest quarterly declines, while other provinces stayed mostly unchanged. Some local areas even saw slight increases, such as Laval and Northeast Ontario. At the high end, vacancy rates reached 4.8 per cent in Northwest Ontario and northern B.C. The lowest was under 2 percent in parts of Newfoundland and Labrador.
Employers are still offering higher wages for new hires, but the pace has eased. The average posted hourly wage was $28, up 4.5 percent from last year but slower than earlier increases. University-level jobs pay the most, averaging $43.60 an hour, compared to just $21.65 for positions requiring only a high school.
Jobs that stay open for more than 90 days now make up 27.5 per cent of all vacancies, down from 30 per cent a year ago.
The job market is cooling but uneven. A cooling economy is pushing more people into competition for fewer jobs, but the system often rewards who you know rather than what you bring. For many Canadians, the barrier is not ability; it is access, being “backed” by someone with influence. That imbalance means the labour market is shifting, but not always in a way that is fair or transparent.