Canadian employers posted 20,600 fewer job openings in the first quarter of 2025 as the labour market continued to soften, with vacancies falling to 524,300 positions nationwide.
The 3.8% quarterly decline brought job vacancy levels close to pre-pandemic averages, according to Statistics Canada data released Monday. Year-over-year, vacancies dropped by 116,100 positions, an 18.1% decrease that signals a marked cooling from the tight labour conditions of recent years.
The job vacancy rate fell to 2.9% in the first quarter, down from 3.6% a year earlier, as unemployment rose faster than new job postings appeared.
Competition intensifies for available positions
The unemployment-to-job vacancy ratio climbed to 2.9 unemployed people per available job, up from 2.0 in the same quarter last year. The increase reflects both rising unemployment, which jumped 15.6% year-over-year, and the continued decline in available positions.
“We’re seeing a normalization of the labour market after several years of extremely tight conditions,” the data suggests, with vacancy levels now comparable to the 2017-2019 average of 506,300 positions.
Despite fewer job openings, total labour demand increased slightly by 0.2% as companies filled more existing positions rather than creating new ones.
Service and healthcare sectors lead declines
Sales and service occupations saw the steepest year-over-year drop, losing 36,300 vacancies or 19.6% compared to the first quarter of 2024. Job openings in this sector fell to their lowest level since late 2016.
Healthcare vacancies declined by 17,500 positions year-over-year, a 18.9% drop, though openings remain well above pre-pandemic levels. Registered nursing positions accounted for much of the decline, with 7,700 fewer vacancies posted.
Trades and transportation occupations lost 27,200 vacancies year-over-year, representing a 21.8% decrease as construction and trucking sectors pulled back on hiring.
Wage growth moderates across all sectors
Average offered hourly wages for vacant positions rose 6.1% year-over-year to $28.90, slower than the 7.4% growth recorded in the previous quarter. The moderation suggests employers face less pressure to compete aggressively for workers.
Positions requiring a bachelor’s degree or higher offered average wages of $43.35 per hour, nearly double the $22.10 average for roles requiring high school education or less.
Regional variations emerge
Quebec recorded the largest provincial decline with 9,500 fewer vacancies, followed by British Columbia with 6,600 fewer openings and Alberta with 4,300 fewer positions.
The job vacancy rate fell in 50 of Canada’s 69 economic regions, with the Northwest Territories, Saskatchewan’s Swift Current-Moose Jaw region, and Yukon posting the steepest declines.
Education requirements shift hiring landscape
Vacancies for positions requiring high school education or less fell by 66,800 year-over-year, accounting for nearly 60% of the overall decline. The unemployment-to-job vacancy ratio for these positions rose to 2.9 from 2.0 a year earlier.
For university-educated workers, competition intensified even more sharply. The unemployment-to-job vacancy ratio for positions requiring a bachelor’s degree or higher jumped to 5.1 from 3.7 in the previous year.
The data indicates employers are becoming more selective in their hiring as economic uncertainty prompts caution across multiple sectors and skill levels.
