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Canada's unemployment rate unfortunately stayed at its historic high of 7.1% (outside of the pandemic) through September 2025. Youth unemployment ticked up too, hitting 14.7%. This is the highest youth unemployment rate since 2010, again outside of the pandemic.

But, it’s not all bad news.

Employment overall increased by 60,000 jobs — which surprised many economists. It had been speculated that the jobs increase would be closer to 5,000. Full-time roles actually increased by 106,000, though this was offset by part-time job losses of -46,000. Still, increases in full-time roles are generally a good sign for the economy.

Key Takeaways

Here’s what the data is showing in this month’s labour market data from Statistics Canada:

  • Unemployment rates remained at the highest levels we have seen since the pandemic in September 2025.
  • The youth unemployment rate hit a high of 14.7%, up .2% from August 2025.
  • Full-time employment increased by over 100,000 roles in September, and the average hourly wage increased by 3.3%.
  • We saw increases in employment in manufacturing (especially in Ontario and Alberta), marking the first increase in this industry since January 2025.
  • Two key takeaways for newcomers: 1) over qualification among recent immigrants has increased in Canada in September 2025 — up to 34.7%, and 2) temporary foreign workers are being blamed for youth unemployment in some political and media circles, so there may be further and more intense calls to end the program as a result of this data release.

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Regional Insights from the September 2025 Labour Market Data

Unemployment remained below the national average in Saskatchewan, BC, Manitoba, Nova Scotia, and Quebec. Though it did increase slightly in BC and Manitoba, and more dramatically in Saskatchewan. Quebec now boasts Canada’s lowest provincial unemployment rate, at 5.7%.

Ontario’s unemployment rate remains elevated at 7.9% (a .2% increase from August), with Toronto maintaining its high unemployment rate of 8.9% through August and September. Newcomers who are moving to Canada soon and are considering Toronto as a landing destination may be wise to look outside of Toronto for better job prospects, especially outside of in-demand sectors.

Provincial Unemployment Rates Across Canada in September 2025

Here are the provincial unemployment rates in Canada, based on StatsCan data from September 2025:

  • Alberta (7.8%)

  • British Columbia (6.4%)

  • Manitoba (6.2%)

  • New Brunswick (8.1%)

  • Newfoundland and Labrador (10.6%)

  • Nova Scotia (6.2%)

  • Ontario (7.9%)

  • Prince Edward Island (9.7%)

  • Quebec (5.7%)

  • Saskatchewan (6.0%)

Changes in Provincial Unemployment from August to September 2025

Bar graph comparing unemployment across Canada's provinces from August to September 2025

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Immigration Spotlight: Overqualification Increases among Recent Immigrants

The recent StatsCan data revealed a fairly startling increase in over-qualification in employment among recent immigrants. The data shows that 34.7% of recent immigrants indicated that they are over-qualified for their current role, this is 4.2% higher than this time last year. Many of the newcomers who reported this worked in sales and service, and business, finance, and administration roles.

Most concerningly, the proportion of Canadian-born workers who felt they are over-qualified for their role decreased during this time, to 18.5%.

The reasons for this are likely quite complex, including higher-than-historic numbers of newcomers in recent years increasing competition, alongside Canada’s tendency to prioritize workers with Canadian work experience. But, just because there are systemic barriers, doesn’t mean there’s nothing you can do. It’s important to tailor your Canadian CV and cover letter for the Canadian workforce to really highlight your value in a way employers understand. You can find our resources covering this below.

Expert resources to help immigrants get jobs in Canada

Canada’s job market provides a wealth of opportunity for newcomers, but it is only that — an opportunity.

To take full advantage, recent and prospective immigrants can leverage free government-funded resources and programs. We recently partnered with Canada InfoNet, a government-funded pre-arrival employment support program, to bring you two expert guides on transitioning to a career in Canada:

The outlook on Canadian construction and infrastructure

Ruairi Spillaine, Outpost Recruitment and Moving2Canada founder, analyzes what’s happening in the construction sector in Canada.

“Procurement of building materials during a potential trade war is going to create pandemic-style escalations in a construction sector that is already struggling with a prolonged period of higher rates. The addition of tariffs isn’t good news for the construction sector in Canada or the US

Canada's job market: Ruairi Spillane, founder of Outpost Recruitment
Moving2Canada and Outpost Recruitment Founder, Ruairi Spillane

 

If you are interested in working in Canada’s construction sector, Outpost helps motivated candidates find suitable jobs in Canada.

The agency works with general contractors, subcontractors, developers, and consultants who are hiring across senior management, operations, project management, site, design, quality, and commercial personnel.

Outpost Recruitment is actively looking for candidates for projects across Canada. View the latest job postings here.

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How to get a job in Canada

If you’re looking for a job in Canada here are some steps you can take to land that sweet, sweet Canadian job offer.

Here’s a popular webinar from recruitment expert and Moving2Canada founder, Ruairi Spillane, about how to create the best resume for the Canadian jobs market:

New and improved Jobs Board

We have worked hard over recent weeks to ramp up the number and range of job postings on our Jobs Board.

We also have a number of other resources for helping you find your career in Canada. You’ll find broad-stroke information that will arm you with the knowledge you need to succeed, as well as industry-specific insights into finding jobs by industry, such as teaching.

Don’t forget to complete or update your Moving2Canada profile to hear about job opportunities in your industry in Canada!

Want to dig deeper into the Canada Jobs Report data? Try these interactive tools, courtesy of StatsCan.

About the author

Stephanie Ford profile picture

Stephanie Ford

She/Her
Finance, Law and Immigration Writer
Stephanie is a content creator who writes on legal and personal finance topics, specializing in immigration and legal topics. She earned a Bachelor of Laws and a Diploma in Financial Planning in Australia. Stephanie is now a permanent resident of Canada and a full-time writer at Moving2Canada.
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Citation "Canada’s Unemployment Remains 7.1% Through September 2025, Youth Unemployment Ticks Up." Moving2Canada. . Copy for Citation