Canada’s Job Market May Be Heating Up — Despite Rising Unemployment Rates

It was widely predicted that we would see another 50 basis point drop in the Bank of Canada rate in early December — and that prediction did come true.

What this means in basic terms is that the Bank of Canada (BoC) considers inflation to be relatively under control (the rate usually increases if inflation is high). As a result, the BoC is now trying to stimulate spending in Canada’s economy to prompt growth.

In other words, the BoC hopes that Canadians and Canadian businesses will spend more — which typically means a better job market and better working conditions. Interestingly, in this case, some experts are predicting that better working conditions will come in the form of flexibility and work-life balance measures and other non-monetary benefits instead of higher wages.

You can read the Statistics Canada release with the November data here.

Key Takeaways

• Canada’s Labour Force Survey for November 2024 reports an increase in employment by 51,000 — mostly in full-time positions.
• Unemployment reached 6.8% in November, which is quite high. It’s the highest rate Canada has seen since January 2017 (excluding during the COVID-19 shutdowns).
• Unemployment rates are higher in larger cities, such as Windsor ON, Edmonton AB, Toronto ON, and Calgary AB.
• One of Canada’s major banks, RBC, published a report about the significant financial impacts decreasing immigration targets will have on Canada’s economy — with estimates that it will cost around $50 billion.

First, the good news: 

Canadian Households Are Dealing With Debt Well

Economic reporting from Statistics Canada reveals that Canadian households are dealing relatively well with debt levels, despite high interest rates over the past twelve months. The average household debt to income level decreased in Q3 of 2024 (and has been dropping since 2023), showing that (generally speaking) Canadians are managing financial stress quite well — even if they don’t feel like it.

For the economy, this may signal that households are ready to spend more in 2025. Some experts are predicting that spending and hiring will increase next year as a result of this trend combined with the rate cut.

Employment Increased

Despite a higher unemployment rate, employment did rise in November 2024 — largely in full-time roles. The increase was mostly among men aged 25-54 and in the following sectors:

• Wholesale and retail trade
• Construction
• Professional, scientific and technical services
• Educations services
• Accommodation and food services.

Employment rose in Alberta, Quebec, Manitoba and Prince Edward Island.

Wages also showed continued growth, up to $35.68, an increase of 4.1% on a year-over-year basis.

Challenges Remain for Newcomers 

While signs are pointing towards the job market heating up in Canada in 2025 and employers in many sectors are still experiencing widespread labour shortages, it’s not all good news in the economy.

Growth is sluggish and spending is likely going to increase slowly over the next twelve months, not all at once like we saw following the pandemic. Plus, companies are going to need to adapt to new economic conditions. In other words, change over the next 12 months will likely be slow and frustrating.

If you’re looking to land a role in Canada or to move into your dream role, it’s important that you 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. 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.

“Another interest rate drop from the Bank of Canada gives hope for a flagging Canadian economy. It seems apparent that the Canadian economy is set for a squeeze after a long period of aggressive interest rate hikes, which had been required to combat runaway inflation. Timing when to encourage borrowing again is a tricky art so it feels like a soft landing is somewhat uncertain when you look at the overall economy. Concerns around the health of the US economy over the past week will make the Canadian economy nervous given their close ties.

Thankfully the construction sector is continuing to boom but primarily due to public expenditure given private investment has been choked by higher interest rates.“

 

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.