Canada’s job market cooled significantly in the second quarter of 2025, with vacancies falling to their lowest level in seven years as employers found fewer open positions to fill.
Job vacancies dropped by 18,900 positions to 505,900 in the second quarter, a 3.6% decline from the previous quarter, according to Statistics Canada data released Monday. Compared to the same period last year, vacancies plunged 12.6% or 72,900 positions.
The vacancy count represents the lowest recorded since the first quarter of 2018, when 501,500 positions remained unfilled across the country.
Unemployment competition intensifies
The tightening job market means more competition for available positions. The unemployment-to-job vacancy ratio rose to 2.9 unemployed people per vacancy in the second quarter, up from 2.2 a year earlier, Statistics Canada reported.
Workers with university degrees faced the steepest competition, with 4.9 unemployed people competing for each vacancy requiring a bachelor’s degree or higher. This represents nearly one additional competitor per position compared to last year’s 4.0 ratio.
In contrast, trade certificate holders encountered the least competition at 1.8 unemployed people per vacancy.
Full-time positions bear brunt of decline
Full-time vacancies absorbed most of the quarterly decline, falling by 20,300 positions or 5.1%. Part-time vacancy levels remained relatively stable, according to the data.
Both permanent and temporary positions saw decreases, with permanent vacancies down 14,600 positions and temporary positions declining by 4,300.
The job vacancy rate, which measures vacant positions as a proportion of total labour demand, fell to 2.8% in the second quarter from 2.9% in the previous quarter.
Healthcare and trades lead sectoral declines
Healthcare occupations recorded the largest year-over-year decline, shedding 18,100 vacancies or 20.8%. Despite this drop, healthcare vacancies at 68,900 remained well above pre-pandemic levels of 39,000 in late 2019.
Trades, transport and equipment operators saw vacancies fall by 15,700 positions or 14.7% compared to last year. Sales and service occupations dropped 16,100 vacancies.
Only arts, culture, recreation and sport occupations bucked the trend, adding 900 positions for a 9.5% quarterly increase.
Wage growth moderates
Average offered hourly wages for vacant positions increased 4.5% year-over-year to $28.00 in the second quarter, down from 6.1% growth in the first quarter, Statistics Canada said.
Positions requiring university degrees commanded the highest wages at $43.60 per hour on average, more than double the $21.65 offered for roles requiring high school education or less.
Regional variations emerge
Five provinces saw vacancy declines in the second quarter, led by Quebec with 7,600 fewer positions and Ontario with 7,300 fewer openings.
Among economic regions, Northwest Territories posted the largest year-over-year vacancy rate decline at 2.4 percentage points to 3.3%. Only three regions recorded increases.
The proportion of long-term vacancies lasting 90 days or more fell to 27.5% nationally from 30.1% a year earlier, suggesting employers face less difficulty filling positions than previously.
