Snapshot of Canada’s Jobs Market for 2026

On this page you will find

• Where Canada’s unemployment rate stands entering 2026
• Why unemployment rose without major job losses
• Which age groups face the strongest headwinds
• The industries still adding jobs
• What labour market trends mean for newcomers

Canada enters 2026 with a labour market that looks stable on the surface but remains uneven underneath. Employment held steady at the end of 2025, wages continued to rise, and hiring picked up late in the year. At the same time, unemployment climbed as more people began actively looking for work.

The latest Labour Force Survey from Statistics Canada paints a picture of a jobs market that is no longer overheating, but not fully cooling either. For workers, newcomers, and employers, the message is mixed: jobs still exist, but competition has increased and outcomes vary sharply by age, sector, and province.

Unemployment Is Up – But Not Because Jobs Are Disappearing

Canada’s unemployment rate rose to 6.8 percent in December 2025, up 0.3 percentage points in one month. That sounds worrying, but the increase did not come from widespread layoffs.

Instead, more people entered the labour market and started searching for work. Employment itself barely changed, rising by just over 8,000 positions nationwide. In other words, people are competing for jobs rather than losing them in large numbers.

There were about 1.6 million unemployed people in December, up nearly 5 percent from November. The participation rate also rose, showing that confidence in finding work has not collapsed, even as hiring remains selective.

A Year of Two Halves for Jobs in 2025

The 2025 labour market split cleanly in two.

From January to August, Canada saw almost no net job growth. Hiring slowed, job vacancies fell, and the unemployment rate climbed to a high of 7.1 percent in late summer. Trade uncertainty, particularly around exports to the United States, weighed heavily on employer confidence.

From August through November, conditions improved. Employment rose by more than 180,000 positions, and the unemployment rate dipped before edging up again in December as job searches increased.

By year end, the employment rate stood at 60.9 percent, almost unchanged from December 2024. Canada did not lose ground overall, but it did not gain momentum either.

Who Is Finding Work – And Who Is Not

Age remains one of the clearest dividing lines in Canada’s jobs market.

Employment rose strongly among people aged 55 and older, increasing by 33,000 in December alone. Their unemployment rate fell to 5.1 percent, reflecting steady demand and lower turnover.

Youth aged 15 to 24 faced the opposite experience. Youth employment fell by 27,000 in December, pushing the youth unemployment rate to 13.3 percent. Students and recent graduates had an especially difficult time in 2025, with summer job prospects among the weakest seen outside recession years.

Among core-aged workers between 25 and 54, unemployment rose modestly for both men and women as more people began looking for work. This points to competition rather than collapse.

Health Care Keeps Hiring While Other Sectors Cool

Industry trends show where demand still exists.

Health care and social assistance continued to add jobs, growing by 21,000 positions in December and by 85,000 over the past year. This growth reflects structural demand rather than short-term cycles and reinforces why health occupations remain a priority for immigration selection.

Personal and repair services also expanded, while several sectors contracted:

• Professional, scientific and technical services posted their first decline in months
• Accommodation and food services continued to shed jobs
• Utilities saw sharper percentage declines, though from a smaller base

Canada’s job market is no longer broadly expanding. Instead, it is reallocating toward essential services.

Provincial Picture – Quebec Up, Western Canada Mixed

Provincial results varied sharply.

Quebec added 16,000 jobs in December, its first notable gain in months. Employment grew over the year, though more slowly than in 2024.

Alberta lost jobs in December but remained ahead year over year, with employment up more than 2 percent. Saskatchewan also saw a monthly decline.

Ontario stood out for the wrong reasons. Employment barely changed at the end of 2025, while the unemployment rate rose to 7.9 percent as more people searched for work. Job growth in the province slowed significantly compared with the previous year.

For newcomers and job seekers, location continues to matter almost as much as occupation.

Gig Work Is Stable – But Heavily Concentrated Among Immigrants

Digital platform work remained stable in 2025, with about 667,000 Canadians earning income through apps or online platforms. Most did this as a side activity rather than a main job.

Recent immigrants were far more likely to rely on platform work. More than 8 percent of immigrants who arrived in the past five years reported working through digital platforms, compared with just 1.5 percent of people born in Canada.

For many newcomers, gig work remains a bridge rather than a destination, often used to supplement income or cope with difficulty finding traditional employment.

What This Means for 2026

Canada’s labour market is not in crisis, but it is tighter and more competitive than it was two years ago. Employers are hiring cautiously. Job seekers need stronger credentials, clearer targeting, and realistic expectations.

For immigration candidates, the data reinforces a clear trend: Canada continues to need workers in essential and regulated fields, particularly health care, while competition intensifies in general white-collar and entry-level roles.

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