Embracing Canada’s Shifting Employment Landscape in 2025
Canada’s job market in 2025 is in a transitional phase—marked by slowing growth, shifting sector priorities, and evolving workforce expectations. In May, the national unemployment rate rose to 7.0%, its highest level since 2016 outside of the pandemic, with over 1.6 million Canadians actively seeking work. While job creation has slowed—just 8,800 net new jobs were added in May—key sectors like healthcare, skilled trades, tech, and even cannabis continue to show resilience and hiring momentum.
For employers, this means rethinking hiring strategies: demand for talent remains high in specialized fields, but top candidates now prioritize flexibility, career growth, and purpose-driven work. For job seekers, the opportunity lies in aligning with sectors that are adapting and growing—especially those investing in automation, digital transformation, and sustainability.
Whether you're building a team or building your career, understanding where the market is headed is essential for making confident, strategic decisions in 2025.
Labour Market Cooling, but Not Collapsing
Labour force participation edged up to 65.3 %, steady with recent levels but slightly down from early 2024.
Average hourly wages rose by 3.4 % year-over‑year, reaching about C$36.14, outpacing inflation (~2 %) and signaling wage growth that supports consumer strength.
Younger workers (ages 15–24) saw their participation rate hold at 63.1 %, slightly below pre‑pandemic averages.
Growth remains uneven across regions: British Columbia, Nova Scotia, New Brunswick, and Ontario saw employment increases, while Quebec, Manitoba, and P.E.I. recorded declines
The Rise of Tech & AI
Tech remains a major hiring area: 91% of Canadian tech leaders report a talent shortage in AI, machine learning, and cybersecurity [Source]. But despite the buzz, only 0.28% of job postings mention “GenAI”, and most are still concentrated in traditional STEM fields.
That said, non-STEM industries—including cannabis—are beginning to integrate AI-driven roles, especially in supply chain optimization, quality control, customer experience, and retail forecasting.
Our latest salary guide confirms this shift:
AI/tech-related roles are quietly entering sectors like cannabis, where employers seek hybrid talent with both compliance knowledge and digital fluency.
Cannabis companies are increasingly investing in automation and data analytics, not just in cultivation and distribution, but also in e-commerce and CRM systems.
Salaries for cannabis tech roles—such as data analysts, process engineers, and digital marketing leads—are trending 10–15% above market average in growth provinces (Ontario, B.C.).
High-Demand Roles Across Sectors
Health care: Large nurse shortage—registered nurse vacancies more than doubled since 2017, overwhelmingly high across Canada en.wikipedia.org.
Tech roles: Developers, data scientists, cybersecurity analysts, IT project managers and AI specialists remain in demand msmunify.com.
Other booming roles (per Randstad/Indeed/others): pharmacy assistants, HR generalists, electricians, sales reps, engineering (civil, mechanical, electrical), and digital marketing professionals are top opportunities.
Cannabis Sector — Stabilizing, Then Scaling
Since legalization in 2018, Canada’s cannabis industry has weathered a boom-bust cycle—but signs now point to measured regrowth and hiring stabilization in 2025.
Industry Overview
After consolidation and layoffs in 2022–2023, licensed producers are now focusing on profitability over aggressive expansion.
Growth is concentrated in:
Retail operations (especially in Ontario and Alberta),
Cannabis-infused products (beverages, wellness),
Export channels to emerging legal markets.
Hiring Trends
In-demand roles include:
Quality assurance and regulatory compliance specialists
Product development and lab analysts
Hybrid talent is sought—agriculture + biotech, or marketing + compliance skills are highly valuable.
The Flexibility Imperative
37% of employers are now offering flexible work arrangements; for 44% of professionals, 2–3 days in-office is the ideal work model.
Flexibility has become a retention lever—34% of employees say they wouldn’t change jobs if flexibility remains.
Wage Pressure Moderating
Posted wages rose 2.8% year-over-year in Q1 2025—down from prior peaks of 5%.
Average actual wage growth remains steady at ~3.4%–3.6% .
Trade & Immigration: Underlying Headwinds
U.S. tariffs on steel, aluminum and autos depress exports by ~10% and threaten jobs in manufacturing/auto/aerospace.
Caveat: Canada plans to reduce immigration numbers from 485,000 to 365,000 by 2027, raising labor supply concerns, particularly in health and technology.
Canada’s 2025 labour market presents a nuanced picture: softening yet stable. Smart sourcing and sector prioritization, combined with flexible work tactics, can help recruiters and employers remain resilient and even thrive. By tapping into rising demand in healthcare, tech, and skilled trades—and championing upskilling and flexibility—recruiters can effectively bridge candidates with the evolving needs of Canadian industry.
