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Written By
Steve Tustin
Mar 17, 2025
•Job Search
According to Statistics Canada, the economy added 1,100 jobs in February. Many economists had been predicting a net gain of 20,000 jobs. February’s numbers are far below the jobs added in January. This lack of growth in the Canadian job market comes after three months of large job growth in:
That amounts to 211,000 jobs or a 1% gain during those three months.
Statistics Canada reported 387,000 more people worked in the Canadian job market, a 1.8% year-over-year increase from February 2024.
Derek Holt, Scotiabank’s vice president and head of capital markets economics, says the results of February’s Canada job market report are misleading. “Canada’s job market was considerably stronger than the flat headline employment change (1,100 jobs) suggested,” said Holt.
“Furthermore, weather played a large role in damping down jobs, hours, and the labour pool,” said Holt. He added that an extremely snowy February likely held back job growth in sectors such as restaurants and bars, info/culture/recreation, and construction which are sensitive to Canada’s winter weather.
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REGISTER FOR THE WEBINARU.S. President Donald Trump’s tariffs on certain Canadian goods kicked in on March 4. Many of them have already been scaled back or removed. However, the tariffs have created economic uncertainty in Canada.
According to the latest Statistics Canada report, annual inflation was 1.9% in January (up from 1.8% in December), and experts forecast that it is unlikely to rise much higher in the short term. However, the Bank of Canada has warned that the growing tariff war with the United States will cause economic damage to Canada such as job losses due to layoffs.
What impact tariffs will have in the short and long term on the job market or when the trade issues will be over remains to be seen. Newcomers need to follow this critical issue.
Three factors driving Canada’s recent steady job growth have been lower inflation, interest rates, and a large drop in international students and temporary foreign workers.
On March 12, the Bank of Canada cut its interest rate to 2.75% from 3.0%, its seventh consecutive cut. Many economists predict there will be more cuts in 2025, affecting both job creation and the cost of living.
According to Statistics Canada, the country’s manufacturing industry, which led job gains in January, shrunk by 4,800 positions in February. However, Ontario, the most popular landing spot for newcomers, bucked the job loss trend by adding 10,800 manufacturing jobs in February, almost identical to January’s gains.
These sectors saw healthy job gains in February:
The transportation and warehousing sector saw a loss of 23,000 jobs in February. This follows large gains of 23,000 jobs in December and 13,000 in January. Year-over-year employment in this sector was down 29,000 jobs.
The professional, scientific and technical services sector lost 33,000 jobs, following upward hiring from July 2023 to November 2024. The construction sector lost 5,000 jobs (-0.3%).
| SECTOR | % CHANGE JANUARY TO FEBRUARY 2025 |
|---|---|
| Agriculture | -0.5 |
| Natural Resources | -0.2 |
| Utilities | -5.0 |
| Construction | -0.3 |
| Manufacturing | -0.3 |
| Wholesale and Retail Trade | 1.7 |
| Transportation & Warehousing | -2.1 |
| Finance, Insurance, Real Estate, Rental & Leasing | 1.1 |
| Professional, Scientific and Technical Services | -1.6 |
| Business, Building & Other Support Services | 0.5 |
| Educational Services | 0.1 |
| Health Care & Social Assistance | 0.4 |
| Information, Culture & Recreation | 0.4 |
| Accommodation & Food Services | -1.3 |
| Other Services (Except Public Administration) | -0.4 |
The unemployment rate is a measure to understand the economy’s health and the job market.
The latest job market report statistics reveal a loss of 19,700 full-time roles in February, offset by a gain of 20,800 part-time jobs.
Unemployment in February fell in Ontario to 7.3% from 7.6%, which is still above the national rate of 6.6%. Unemployment rose in New Brunswick, Nova Scotia, and Prince Edward Island but remained unchanged from January in Manitoba, Saskatchewan, Alberta, and British Columbia.
| CITY AND PROVINCE | UNEMPLOYMENT RATE FEBRUARY 2025 % (JANUARY 2025 %) |
|---|---|
| CANADA | 6.6 (6.6) |
| Barrie, Ontario | 5.6 (5.8) |
| Calgary, Alberta | 7.3 (7.7) |
| Edmonton, Alberta | 7.1 (7.2) |
| Halifax, Nova Scotia | 5.0 (5.0) |
| Hamilton, Ontario | 7.4 (7.5) |
| Kitchener- Cambridge-Waterloo, Ontario | 8.3 (8.0) |
| London, Ontario | 6.6 (7.0) |
| Ottawa, Ontario | 5.5 (5.8) |
| Regina, Saskatchewan | 7.2 (7.0) |
| Saskatoon, Saskatchewan | 4.7 (4.8) |
| Sudbury, Ontario | 6.0 (5.9) |
| Toronto, Ontario | 8.6 (8.8) |
| Vancouver, British Columbia | 6.8 (6.6) |
| Windsor, Ontario | 9.4 (9.1) |
| Winnipeg, Manitoba | 6.2 (6.3) |
In 2024 Immigration, Refugees and Citizenship Canada (IRCC) created new immigration targets for 2025 – 2027. The new plan lowers targets to reduce pressure on housing supply and other services. The targets apply across all permanent residence categories. Canada has also cut the number of temporary foreign workers and international students it welcomes.
| YEAR | PERMANENT RESIDENCE TARGETS |
|---|---|
| 2025 | 395,000 (down from 500,00) |
| 2026 | 380,000 (down from 500,000) |
| 2027 | 365,000 |
The government hopes the new plan will result in a population decline of 0.2% in 2025 and 2026 and an increase of 0.8% in 2027.
With a rapidly changing job market, it’s essential to consider how changes will affect job prospects in your specific industry and occupation.
Economists are uncertain about the Canadian job market heading into the spring and summer if the trade war with the United States does not end soon or grows. Looking ahead, Scotiabank’s Derek Holt advises newcomers to ignore February’s report.
“There should be much more focus upon forward-looking debates,” said Holt, “like whether U.S. trade policy will come to its senses and how that may affect trend job growth going forward.”
Canada, with Mark Carney as the new Liberal Party Prime Minister, will hold a federal election on April 28. This may also impact the economic direction and job market.
Understanding job market trends is vital for newcomers who want to continue their careers in Canada. The static job market in February reflects economic uncertainty over tariffs and harsh weather in Canada’s key provinces and regions.
Continuing low inflation and falling interest rates indicate a resilient economy despite uncertainty. Employment rates remain stable in the critical 25-54-year-old age group, and average hourly wages among employees were up 3.8% (up $1.32 to $36.14) year-over-year in February.
Researching job prospects for your profession in Canada is the key to your success. It will make it easier to continue your career if there is a strong outlook for your profession.
Rent prices, demand, and homebuying costs are falling across Canada, including in cities like Toronto and Vancouver. This is also good news for the Canadian economy and newcomers. Choosing a destination city with affordable housing options and strong job prospects will lay the foundation for financial success.
WRITTEN BY
Steve Tustin
Senior Editor, Prepare for Canada
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
© Prepare for Canada 2025
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