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The labour market report for January 2025 brings encouraging news. Canada added 76,000 jobs in January—a 0.4% increase in employment. The employment rate ticked up by 0.1 percentage points to 61.1%, and the unemployment rate fell by 0.1 points to 6.6%.

Canada’s job market started the year on a positive note in January 2025. After several months of cautious growth, the economy added 76,000 jobs, nudging the employment rate higher and nudging the unemployment rate lower. This steady momentum signals that the labour market is gradually finding its footing again.

Across the country, sectors like manufacturing and professional services helped drive the gains. Young workers enjoyed notable improvements, and core-aged employees saw steady progress. The positive regional trends in Ontario, British Columbia, and New Brunswick further highlight the diverse areas contributing to Canada’s recovery.

At the same time, average hourly wages edged up by 3.5% year-over-year, reflecting ongoing wage growth despite a slight slowdown from previous months. While the overall picture is encouraging, some challenges persist for certain groups, reminding job seekers and newcomers to stay adaptable and well-informed as the labour market continues to evolve.

Key Takeaways

  • Employment Growth: Canada’s job market added 76,000 jobs in January 2025, lifting the employment rate to 61.1% and reducing the unemployment rate to 6.6%.
  • Sector Performance: Notable gains were seen in manufacturing and professional, scientific, and technical services, which drove much of the month’s growth.
  • Regional Trends: Ontario, British Columbia, and New Brunswick led job creation, supporting a broader recovery in the labour market.
  • Wage Trends: Average hourly wages increased by 3.5% year-over-year, despite a modest slowdown compared to previous months.

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Regional Insights

Ontario, British Columbia, and New Brunswick stood out in January’s labour market performance, showcasing regional momentum.

Ontario led the charge by adding 39,000 jobs, reflecting a dynamic and resilient economy that continues to attract investment and talent.

British Columbia followed closely with an impressive boost of 23,000 new positions.

New Brunswick contributed nearly 3,000 jobs, demonstrating that growth is not limited to just the larger provinces. These gains suggest a nationwide recovery where opportunities are emerging across different regions, giving job seekers a range of locations to explore as they consider their next career move in Canada.

Market Challenges

Despite the encouraging job growth, the labour market continues to face significant challenges that could impact certain groups.

For example, the average hourly wage grew by 3.5% year-over-year. This growth is happening at a much slower pace compared to previous months, raising concerns about wage stagnation and the overall quality of job opportunities.

The rise in self-employment and side hustles (up 27,000 in January and 94,000 positions year over year, which is a 3.6% increase) suggests that many workers are turning to alternative forms of income as traditional, full-time roles may not offer the stability they need. Addressing these issues is crucial to ensure that growth benefits all segments of the workforce and supports a more inclusive economic recovery.

Challenges Remain for Newcomers 

Signs are still pointing towards the job market heating up in Canada in 2025 and employers in many sectors are still experiencing widespread labour shortages, but significant uncertainty in the economy may deflate investment in hiring.

In other words, change over the next 12 months may 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:

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:

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.

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.

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.

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

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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 "Another Surprising Market Report After Canada Adds 76,000 Jobs in January." Moving2Canada. . Copy for Citation