Canada’s Unemployment Rises to 7.1%, the Highest Since the Pandemic

Regional Insights from the August 2025 Labour Market Data

Unemployment is below the national average in Saskatchewan, BC, Manitoba, and Quebec. However, the unemployment rate did increase slightly in BC, Manitoba and Quebec, so there are signs of strain showing there. Saskatchewan continues to be a bright spot in the current economic climate in Canada, as unemployment drops 0.3% in August to 4.7%.

Ontario’s unemployment rate remains elevated at 7.7%, with Toronto reaching 8.9% in August. Compared to other sought-after cities, Toronto leads with the highest unemployment rate, followed by Montreal at 6.9% and Vancouver at 6.4%

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.

Provincial Unemployment Rates Across Canada in August 2025

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

• Alberta — 8.4%

• British Columbia — 6.2%

• Manitoba — 5.7%

• New Brunswick — 7.7%

• Newfoundland and Labrador — 10.7%

• Nova Scotia — 6.5%

• Ontario — 7.7%

• Prince Edward Island — 8.1%

• Quebec — 6.0%

• Saskatchewan — 4.7%

Changes in Provincial Unemployment from July to August 2025

Employment Stats Per Province

The following provinces experienced a decline in the number of individuals employed:

Ontario — 26,000

British Columbia — 16,000

Alberta —14,000

New Brunswick — 6,500

Manitoba — 5,200

Newfoundland and Labrador —3,200

Industry Outlooks – August 2025

In August 2025, employment trends varied across key industries:

• Professional, Scientific, and Technical Services:
  Employment declined by 26,000 (-1.3%), marking the first drop after five months of stability. Still, compared to August 2024, the industry saw a net gain of 36,000 jobs (+1.8%).

• Transportation and Warehousing:
  Employment fell by 23,000 (-2.1%), reversing the gains from July. Year-over-year, overall employment in this sector remained largely unchanged.

• Manufacturing:
  Employment decreased by 19,000 (-1.0%). Since the peak in January 2025, the sector has lost 58,000 jobs (-3.1%), showing a steady downward trend.

• Construction:
  Employment rose by 17,000 (+1.1%), nearly offsetting July’s decline of 22,000 (-1.3%). This was the first monthly increase since January, with overall employment holding steady year-to-date.

• Healthcare and Social Assistance:
  Employment increased by 3,300 (+0.1%) in August, partially recovering after a significant decline of 16,500 (-0.6%) in July.

Cities and Regions with Low Unemployment in August 2025

Canada released some additional data showing unemployment data across its small cities, and it shows that unemployment is much lower in rural areas than in the major cities.

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

• Kelowna, British Columbia
• Victoria, British Columbia
• Thunder Bay, Ontario
• Halifax, Nova Scotia
• Fredericton, New Brunswick
• Saguenay, Quebec
• Québec City, Quebec
• Sherbrooke, Quebec
• Trois-Rivières, Quebec
• Drummondville, Quebec
• Saskatoon, Saskatchewan
• Regina, Saskatchewan

Market Challenges Newcomers Face in August 2025

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

Youth unemployment was 14.5% in August, a marginal decline from the record high of July, with core-aged workers (between 25 to 54) unemployment slowly creeping up to 6.1% in August 2025 (compared to 5.6% in January 2025)

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 and in in-demand industries. 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. Join the Moving2Canada community 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 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.