Canadian employers posted 457,400 job openings in August, the lowest level since 2017 and a sign the country’s labour market continues to cool after years of intense competition for workers.
The vacancy count dropped by 11,300 positions in August and fell 15.2 per cent from the same month in 2024, according to data released Thursday by Statistics Canada. The decline marks a dramatic shift for HR departments that spent recent years struggling to fill roles in a tight labour market.
There are now 3.5 unemployed Canadians for every job vacancy, the highest ratio since November 2016, excluding the pandemic period. A year ago, that ratio stood at 2.8 unemployed workers per opening.
“This reflects a decrease in the number of job vacancies coupled with an increase in the number of unemployed persons,” according to the federal agency. The unemployment rate rose to 7.1 per cent in August from 6.7 per cent a year earlier.
Payroll growth stalls
Payroll employment, which measures employees receiving pay and benefits, increased by just 3,300 positions in August, essentially flat after a gain of 25,600 in July. Year-over-year, payroll employment grew by only 31,500 positions, or 0.2 per cent.
Public administration led monthly gains with 5,000 new positions, driven by provincial and territorial government hiring. Construction added 2,300 jobs, while retail trade shed 4,600 positions and wholesale trade cut 3,300 roles.
The retail sector has declined by 24,200 positions from January to August, with food and beverage retailers and general merchandise stores accounting for most losses. Professional, scientific and technical services dropped 2,600 positions in August.
Wage growth holds steady
Average weekly earnings reached $1,312 in August, up 3.0 per cent from a year earlier. The growth rate slowed slightly from July’s 3.2 per cent increase. Monthly earnings remained unchanged from July.
Average weekly hours worked held steady at 33.3 hours but declined 0.6 per cent on a yearly basis. Earnings growth reflects changes in wages, workforce composition, hours worked and base-year effects, the agency noted.
Transportation sector hits hardest
Job vacancies in transportation and warehousing fell to 21,400 in August, the sector’s lowest level since May 2017. Other services and information and cultural industries also posted declines.
Only agriculture, forestry, fishing and hunting saw an increase in vacancies, adding 2,000 openings. The job vacancy rate across all sectors stood at 2.6 per cent, down from 3.0 per cent in August 2024.
Regional decline widespread
Seven provinces recorded year-over-year drops in job vacancies. British Columbia saw the steepest decline at 21,500 fewer openings, down 23.0 per cent. Ontario lost 20,700 vacancies and Quebec shed 17,300.
The unemployment-to-job vacancy ratio increased in eight provinces. Newfoundland and Labrador posted the highest ratio at 7.3 unemployed workers per vacancy, followed by Alberta at 4.1 and Ontario at 4.3.
The data comes from Statistics Canada’s Survey of Employment, Payrolls and Hours, which tracks about one million payroll records, and the Job Vacancy and Wage Survey.
