Canada’s Unemployment Rate Hits 7%, with 8.8% in Toronto

Regional Insights from the May 2025 Labour Market Data

First, the good news: Employment ticked up in British Columbia. Coupled with unemployment rates that are slightly below the national average in many of BC’s cities, the data is telling us that BC’s labour market is ticking along relatively well — even in the tech sector which has floundered in Ontario recently. Saskatchewan is also bucking the unemployment trends, with well-below average unemployment rates across the province.

But, Ontario appears to be suffering. With manufacturing down, largely due to tariffs and economic uncertainty, Ontario’s unemployment rate is high — at 7.9% — and even worse among many of Ontario’s cities. Windsor (10.8%), Oshawa (9.1%) and Toronto (8.8%) are all experiencing very high unemployment rates at the moment.

Provincial Unemployment Rates Across Canada in May 2025

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

Alberta: 7.5%

British Columbia: 6.3%

Manitoba: 5.9%

New Brunswick: 7.1%

Newfoundland and Labrador: 10.7%

Nova Scotia: 6.9%

Ontario: 7.9%

Prince Edward Island: 8.3%

Quebec: 6.0%

Saskatchewan: 4.8%

Changes in Provincial Unemployment from April to May 2025

Our Key Insights From This Provincial Data

For newcomers to Canada, understanding regional unemployment trends is crucial for making informed decisions about where to settle, seek employment, or invest.

Comparing the April 2025 and May 2025 unemployment data for Canadian provinces, here are our top insights based on the data:

Saskatchewan Offers the Lowest Unemployment, Signaling Job Opportunities:

April 2025: 4.3% | May 2025: 4.8%

Saskatchewan has consistently shown the lowest unemployment rates among provinces, with only a slight increase from April to May. For newcomers, this suggests a robust job market, particularly in sectors like agriculture, mining, and energy. Sub-regions like Yorkton–Melville indicate pockets of extremely low unemployment, making Saskatchewan an attractive destination for job seekers, especially those open to rural or semi-urban areas. Newcomers with skills in these industries may find quicker employment opportunities here compared to other provinces.

Prince Edward Island’s Rising Unemployment Signals Caution:

April 2025: 6.6% | May 2025: 8.3%

Prince Edward Island shows a significant jump in unemployment from April to May, the largest month-to-month increase among provinces. This could reflect seasonal fluctuations in tourism or agriculture, key industries for PEI’s small economy. Newcomers considering PEI for its affordability and quality of life should be cautious about job market volatility, ensuring they have secure employment lined up or skills in demand year-round (e.g., healthcare or education).

Quebec’s Stable Job Market May Appeal to Newcomers

April 2025: 6.0% | May 2025: 6.0%

Quebec’s unemployment rate remains steady at 6.0%, with sub-regions like Chaudière-Appalaches (3.9%) and Capitale-Nationale (4.7%) showing even lower rates. This stability, combined with Quebec’s diverse economy (manufacturing, public sector, tech), makes it a strong option for newcomers, especially those fluent in French, as language skills can enhance job prospects in this bilingual province. Montreal’s slightly higher rate suggests urban competition, so newcomers might explore opportunities in smaller cities like Quebec City.

Ontario’s Large Economy with Rising Unemployment Requires Strategic Choices

April 2025: 7.8% | May 2025: 7.9%

Ontario, home to Canada’s largest job market, and the most popular destinations for newcomers, has a rising unemployment rate. Toronto, in particular, (8.8%) facing significant challenges in the labour market. For newcomers, Ontario offers diverse opportunities in finance, tech, and manufacturing, but the competitive job market and slight uptick in unemployment suggest prioritizing in-demand skills (e.g., healthcare, IT) and considering suburban or smaller cities over Toronto for better job (and potentially immigration) prospects.

Cities and Regions with Low Unemployment in May 2025

These are the cities and regions that had comparably low unemployment in May 2025 (6% or below):

• Halifax, Nova Scotia (5.6%)
• Moncton, New Brunswick (5.6%)
• Fredericton, New Brunswick (6.0%)
• Saguenay, Quebec (4.6%)
• Québec, Quebec (4.6%)
• Sherbrooke, Quebec (4.5%)
• Trois-Rivières, Quebec (5.3%)
• Ottawa–Gatineau, Ontario/Quebec (5.8%)
• Ottawa–Gatineau, Ontario part, Ontario/Quebec (5.6%)
• Belleville–Quinte West, Ontario (4.1%)
• Guelph, Ontario (4.9%)
• Greater Sudbury, Ontario (5.3%)
• Thunder Bay, Ontario (4.4%)
• Winnipeg, Manitoba (5.5%)
• Regina, Saskatchewan (4.6%)
• Saskatoon, Saskatchewan (4.6%)
• Lethbridge, Alberta (5.2%)
• Chilliwack, British Columbia (5.9%)
• Victoria, British Columbia (3.7%)

Market Challenges Newcomers Face in June 2025

Canada’s unemployment rate indicates that newcomers (and indeed anyone in Canada who is currently looking for employment) may find it hard to secure work. The unemployment rate is the highest rate of unemployment in Canada since 2016, outside of the pandemic spike.

So, if you’re in Canada and finding it hard to secure work, it’s not ‘just a feeling’. The data shows that it is harder to find work this year than it was at the same time last year.

Job Opportunities for Newcomers

For newcomers looking to settle in Canada, these trends can be confusing. Employment is tightening in several regions, and certain sectors are shedding positions. In addition, the uptick in unemployment means competition could intensify, making a strong résumé and targeted networking more critical than ever.

On the bright side, wage growth continues, and many employers are still experiencing labour shortages, particularly in provinces with lower unemployment rates. If you’re planning to move, it’s worth exploring areas and industries that show resilience—like Saskatchewan, or niche sectors still adding jobs.

If you’re looking to land a role in Canada, it’s essential to put your best foot forward. Our resources can help.

Here are some new expert resources researched and published by the Moving2Canada team:

• Tips to help you succeed on LinkedIn — Optimize your profile, grow your network, and land your dream job In Canada.
• How salary negotiation in Canada works — Key insights and advice for after you’ve been invited to interview for a role.

Of course, to be invited to interview you’ll need a strong, Canada-style resume, and usually an accompanying cover letter. We’ve helped tens of thousands improve their job search with the templates that come with a free Moving2Canada account. If you haven’t created your account yet, now is the time to jump on board. Create your Moving2Canada account here.

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:

• Transitioning to the Canadian job market
• How to find a career mentor 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“

 

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.

How to take advantage in Canada’s job market

The Moving2Canada team has a special feature for people who want to get a job in Canada or accelerate their career here. Readers can now opt in to hear from recruiters and employers we partner with and upload a resume to their account, all for free.

• If you already have a Moving2Canada account, sign in here and complete or update your profile to hear about job opportunities.
• If you don’t already have a Moving2Canada account, please register here and complete your profile.

We’re excited to help more newcomers and people wishing to move to Canada in their career goals.

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.

• Get your resume in good shape. This crucial step is often left down the list of job seekers’ priorities, despite being arguably the most important step of all. Read our Canadian resume guide to get going.
• Start looking at open opportunities. Some companies are still hiring. Don’t believe us? Head over to our Jobs Board, populated daily with new positions across Canada.
• Build your network. You can assemble a team to help you in your job search. With ongoing physical distancing and travel restrictions, technology is your friend here. Read our networking guide, written by award-winning entrepreneur Ruairi Spillane, for expert advice.

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.