Canada’s job market showed signs of cooling in the first quarter of 2025, as the number of unfilled positions dropped to levels last seen before the COVID-19 pandemic. But the shift is little comfort for more than 1.6 million Canadians who remain unemployed.
Job vacancies fell to 524,300 between January and March—down 20,600 from the previous quarter and 116,100 compared to the same time last year, according to new data released Tuesday by Statistics Canada. That’s an 18.1 per cent drop year-over-year.
The decline affected both full-time and part-time roles, with permanent positions seeing the biggest drop. At the same time, overall labour demand increased slightly due to growth in payroll jobs, which rose by 62,800.
The national job vacancy rate fell to 2.9 per cent. A year ago, it was 3.6 per cent.
Meanwhile, the unemployment-to-job vacancy ratio rose to 2.9. This means there were nearly three job seekers for every open position, up from two in the same quarter last year. The increase was driven by a rise in the number of unemployed Canadians, which grew by more than 200,000, and a drop in available jobs.
This is not a return to balance, it’s a signal of strain. Vacancies are falling, but unemployment is rising faster. That means more Canadians are looking for work, with fewer opportunities to go around.
The largest quarterly declines were in:
- Health occupations: down 5,400 jobs, including nurses and patient care aides.
- Sales and service roles: down 4,600, now at their lowest point since 2016.
- Trades and transport jobs: down 3,300, including construction helpers and truck drivers.
In health care, jobs for registered nurses dropped by 7,700, while vacancies for licensed practical nurses fell by 2,700. Still, health-related jobs remain higher than before the pandemic.
The average hourly wage offered in job postings rose to $28.90—a 6.1 per cent increase from a year earlier. However, wage growth has slowed compared to late 2024, when it reached 7.4 per cent.
When adjusting for the types of jobs available, wage growth was closer to 4.7 per cent. Wages continued to rise across all job categories, with the largest increases in senior management, natural resources, and manufacturing.
The highest average offered wage was $88.15 per hour in senior management jobs. Jobs that required only a high school diploma or less offered $22.10 per hour on average.
Vacancies dropped across all education levels. The largest decline was for jobs needing a high school diploma or less, down 66,800, or 22.3 per cent, compared to a year ago.
Meanwhile, job openings requiring a bachelor’s degree or more fell by 10,700. But the number of unemployed people with higher education rose by 80,000. That pushed the unemployment-to-job vacancy ratio for degree holders to 5.1—meaning five people competing for every open job.
Five provinces and one territory saw job vacancies fall:
- Quebec: down 9,500
- British Columbia: down 6,600
- Alberta: down 4,300
- Manitoba and New Brunswick also posted declines
- Northwest Territories: down 300
Half of Canada’s economic regions saw vacancy rates decline. The biggest drops were in the Northwest Territories, Swift Current–Moose Jaw, and Yukon.
Only a few regions, including Laval and parts of Northern Quebec and Northwest Ontario, reported an increase in job vacancy rates.