On this page you will find:
- The strongest job markets in Canada in 2026
- Why Alberta and Saskatchewan are outperforming
- Ontario’s growing unemployment problem
- The impact of trade tensions and population changes
- Canada’s top 10 labour markets table
- What the trends mean for immigrants and workers
- FAQ on Canada’s regional job market trends
Canada’s labour market is showing growing regional divides, with oil and resource-heavy cities outperforming while manufacturing centres in Ontario continue to weaken, according to the latest Regional Labour Market Report Card from BMO Economics.
The report, authored by BMO Senior Economist Robert Kavcic, found Canada lost 95,000 jobs in the first quarter of 2026, marking the weakest quarterly performance since the pandemic.
Although the national unemployment rate has edged slightly lower, the broader picture points to uneven economic conditions across the country.
Resource Cities Dominate Canada’s Strongest Labour Markets
The report found resource-oriented cities continue to post the strongest employment growth and lowest unemployment rates in the country.
Calgary ranked as Canada’s top labour market, followed by Saskatoon, Edmonton, Regina and Sudbury.
BMO said Alberta‘s labour market has strengthened significantly, with employment growth in the province reaching 4 per cent year-over-year. Alberta’s unemployment rate has also fallen below British Columbia’s for the first sustained period since the mid-2010s energy boom.
Meanwhile, combined employment across Ontario, Quebec and British Columbia fell by 0.4 per cent year-over-year.
Top 10 Job Markets in Canada
| Rank | City | YoY Change | Population Growth | Employment Growth | Unemployment Rate | Employment Rate |
|---|---|---|---|---|---|---|
| 1 | Calgary, AB | ↑ 3 | 3.6% | 4.2% | 6.7% | 66.4% |
| 2 | Saskatoon, SK | ↑ 1 | 3.4% | 3.5% | 5.2% | 66.7% |
| 3 | Edmonton, AB | ↑ 21 | 2.9% | 5.2% | 6.5% | 64.5% |
| 4 | Regina, SK | ↑ 6 | 2.6% | 4.4% | 6.0% | 65.5% |
| 5 | Sudbury, ON | ↑ 15 | 1.6% | 7.0% | 5.9% | 60.5% |
| 6 | Sherbrooke, QC | ↑ 11 | 0.9% | 5.0% | 4.3% | 59.8% |
| 7 | Abbotsford, BC | ↑ 14 | 0.9% | 4.0% | 5.7% | 64.0% |
| 8 | Peterborough, ON | ↑ 23 | 2.2% | 0.1% | 5.4% | 54.9% |
| 9 | Brantford, ON | ↑ 17 | 2.5% | 4.2% | 6.3% | 61.7% |
| 10 | Kelowna, BC | ↑ 20 | 0.7% | 12.6% | 7.0% | 58.6% |
Source: BMO Economics Regional Labour Market Report Card, April 2026.
Ontario’s Manufacturing Belt Faces Growing Weakness
At the other end of the rankings, Ontario’s manufacturing-heavy cities are under mounting pressure.
London ranked last among Canada’s major labour markets, with an unemployment rate of 9.1 per cent, the highest in the country.
Windsor, St. Catharines, Barrie and Kitchener also ranked near the bottom.
BMO said Ontario now has the highest unemployment rate outside Newfoundland and Labrador at 7.6 per cent. The gap between Ontario and the national average is approaching the widest non-pandemic spread ever recorded.
The report linked the weakness partly to trade tensions and slowing manufacturing activity.
Population Caps Also Affecting Southern Ontario
BMO also pointed to federal restrictions on non-permanent residents as another factor affecting Ontario’s labour market.
Southern Ontario has seen some of the sharpest slowdowns in population growth due to caps on temporary residents, including international students and foreign workers.
This may be reducing labour force growth in the region while also weighing on broader economic activity.
What This Means For Immigrants and Workers
The report highlights a growing divide in opportunity across Canada.
For immigrants and temporary foreign workers, Western Canada continues to offer some of the strongest employment conditions, especially in energy, construction, transportation and skilled trades.
Meanwhile, manufacturing-heavy regions in Ontario may remain under pressure if trade uncertainty persists.
The results also reinforce why provinces such as Alberta and Saskatchewan continue to rely heavily on economic immigration programs to fill labour shortages.
Broader Economic Risks Remain
BMO warned that Canada’s labour market is now showing “widening regional variation below the surface.”
The bank said current trends align with a broader economic backdrop shaped by:
- Trade tensions
- Manufacturing weakness
- Elevated oil prices
- Slower population growth
- Softer overall hiring conditions
While Canada’s national employment numbers may appear relatively stable, the report suggests the underlying regional picture is becoming increasingly uneven.
Frequently Asked Questions
Which Canadian city has the strongest job market in 2026?
Calgary ranked as Canada’s strongest labour market in BMO’s April 2026 report. The city benefited from strong employment growth, relatively low unemployment and continued strength in Alberta’s energy-driven economy.
Which provinces are performing best for jobs?
Alberta and Saskatchewan are currently leading Canada’s labour market performance. Cities including Calgary, Edmonton, Saskatoon and Regina ranked among the strongest due to strong resource sector activity and accelerating employment growth.
Which Canadian city has the highest unemployment rate?
London, Ontario recorded the highest unemployment rate among major Canadian cities at 9.1 per cent, according to the BMO report. Several other Ontario manufacturing centres also ranked near the bottom nationally.
Why is Ontario’s labour market weakening?
The report points to manufacturing weakness, trade tensions and slower population growth linked to temporary resident caps as major reasons for Ontario’s softer labour market conditions.
What does this mean for immigrants to Canada?
The findings suggest Western Canada may currently offer stronger employment prospects for newcomers, particularly in skilled trades, energy, transportation and construction sectors. Ontario remains important economically, but some regions are facing softer hiring conditions.