Update on the 2025 Canada Job Market: August Labour Force Survey

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Statistics Canada’s latest Labour Force Survey reports that the Canadian unemployment rate rose slightly between July and August 2025 to 7.1 per cent (+0.2). Employment declined by 66,000 (-0.3) in August, and the employment rate fell by 0.2 percentage points to 60.5 per cent reinforcing signs of a gradual cooling in labour market momentum. Year-over-year, employment was still up by 1.0 per cent, with approximately +212,300 more people working in August 2025 compared to August 2024, though the pace of growth continues to decelerate relative to earlier months.

Job Losses and Gains in August 2025

Canada’s Unemployment Rate

Provincial Unemployment Breakdown July 2025

Employer and Worker Confidence

Numbers You Can Count On

August labour force release 66k jobs decreased, 7.1% unemployment rate, 212.3K employment gains YoY

For more context on the Canada job market's evolution over the past three months, check out the previous updates:

Update on the 2025 Canada Job Market: July Labour Force Survey

Update on the 2025 Canada Job Market: June Labour Force Survey

Update on the 2025 Canada Job Market: May Labour Force Survey

Read the latest Robert Half Labour Market Overview Insights on Canada’s job market data, updated monthly

Job losses and gains in August 2025

Employment declined across several major industries in August, pointing to broad-based softening in the labour market. The professional, scientific and technical services sector led the losses, shedding 26,000 jobs (-1.3 per cent from July), followed closely by transportation and warehousing, which fell by 23,000 jobs (-2.1 per cent from July). Manufacturing also saw a notable decline, with 19,000 fewer jobs (-1.0 per cent from July). These shifts indicate that some typically stable sectors are now experiencing adjustments, reflecting broader changes in the labour market.

Other industries that reported job losses in August 2025, according to Statistics Canada, include:

Educational services: -18,400 (-1.2 per cent)

Other services*: -6,100 (-0.8 per cent)

Natural resources: -5,600 (-1.7 per cent)

Information, culture and recreation: -5,200 (-0.6 per cent)

Finance, insurance, real estate, rental and leasing: -2,800 (-0.2 per cent)

Wholesale and retail trade: -1,800 (-0.1 per cent)

*‘Other services’ includes businesses and organizations providing services not covered by other sectors.

Percentages above represent MoM change

While overall employment declined slightly in August 2025, a few sectors posted modest gains. Construction led the way with an increase of 17,000 jobs (+1.1 per cent from July), offsetting most of the decline seen in the prior month (-22,000 in July). Accommodation and food services saw a small growth, adding 9,200 jobs (+0.8 per cent from July). Agriculture also saw a modest increase of +4,800 jobs (+2.3 per cent from July). Utilities gained 4,700 jobs (+3.0 per cent from July), Health care and social assistance added 3,300 jobs (+0.1 per cent from July). These modest gains helped balance the overall decline in employment, reflecting continued sector-by-sector changes.

Canada’s unemployment rate edges up to 7.1 per cent

Statistics Canada’s August 2025 Labour Force Survey reported that Canada’s national unemployment rate rose slightly from July to August to 7.1 per cent. For businesses seeking to navigate this evolving labour market landscape, these statistics offer valuable insights for workforce planning and recruitment strategies for the remainder of 2025.

While the job market in Canada continues to fluctuate across many sectors, the unemployment rates for skilled professionals supported by Robert Half Canada’s staffing experts – continue to be below the national average:

Business, finance and administration occupations, which includes finance and accounting, HR, and administration and customer service roles: 3.8 per cent (3.3 per cent in July 2025)

Natural and applied sciences and related occupations, which includes technology roles: 3.5 per cent (2.8 per cent in July 2025)

Management occupations, which includes marketing and creative roles: 2.2 per cent (1.9 per cent in July 2025)

Occupations in education, law and social, community and government services, which includes legal roles: 11.3 per cent (6.0 per cent in July 2025)

Customer support roles, which fall outside the above Statistics Canada categories: 4.4 per cent (4.4 per cent in July 2025)

Provincial Unemployment Breakdown July 2025

Unemployment rates by province:

British Columbia: 6.2 per cent (5.9 per cent in July 2025)

Alberta: 8.4 per cent (7.8 per cent in July 2025)

Saskatchewan: 4.7 per cent (5.0 per cent in July 2025)

Manitoba: 5.7 per cent (5.5 per cent in July 2025)

Ontario: 7.7 per cent (7.9 per cent in July 2025)

Quebec: 6.0 per cent (5.5 per cent in July 2025)

New Brunswick: 7.7 per cent (7.5 per cent in July 2025)

Prince Edward Island: 8.1 per cent (8.8 per cent in July 2025)

Nova Scotia: 6.5 per cent (7.0 per cent in July 2025)

Newfoundland and Labrador: 10.7 per cent (10.5 per cent in July 2025)

The August 2025 Labour Force Survey highlights subtle shifts in provincial labour market conditions, with unemployment rates rising in some regions and easing in others.

Employment declined in Ontario (-26,000; -0.3 per cent), British Columbia (-16,000; -0.5 per cent), and Alberta (-14,000; -0.6 per cent) in August, marking the second consecutive month of losses in B.C. and Alberta. Quebec’s employment held steady (+24,000; +9.0 per cent) for a second consecutive month, contributing to the unemployment rate going up. Manitoba and New Brunswick saw declines of -5,200 (-0.7 per cent) and -6,500 (-1.6 per cent) respectively, while Newfoundland and Labrador fell by -3,200 (-1.3 per cent). Prince Edward Island posted a modest gain of +1,100 jobs (+1.2 per cent).

Percentages above represent MoM change

This uneven provincial performance underscores the complexity of Canada’s labour market, where regional economic factors, trade dynamics, and sector-specific trends continue to shape employment outcomes.

Read Robert Half Job Market Updates to get a full picture of Canada’s Labour Force:

2025 Canada Job Market: July Labour Force Survey

2025 Canada Job Market: June Labour Force Survey

2025 Canada Job Market: May Labour Force Survey

Employer and worker confidence

While many of the Canada job market’s latest numbers continue to indicate a challenging economic climate, the unemployment rates for skilled professionals remain steady which align with Robert Half Canada’s latest Demand For Skilled Talent report. The research found that more than half, 58 per cent, of Canadian companies surveyed plan to add new permanent positions in the second half of 2025, while another 36 per cent plan to fill vacated positions. Nearly 7 in 10 business leaders are increasing the number of contract professionals they enlist to support new projects during the same period. The research also reveals, 82 per cent or more (percentage varies depending on the profession) of hiring managers reported challenges finding skilled talent in this current market.

For organizations seeking to hire skilled professionals, the message is clear: Competition for top talent remains fierce and is likely to continue throughout the latter half year. That’s why companies are responding by offering the following:

Hybrid jobs (39 per cent)

Flexible work schedules (37 per cent)

Increased starting salaries (32 per cent)

New perks and benefits (30 per cent)

Data from the 2025 Canada Salary Guide From Robert Half

Numbers you can count on

Get the Report

Our latest Demand for Skilled Talent report provides Canadian employers with the latest employment trends and challenges across six professional fields: finance and accounting, technology, marketing and creative, legal, administrative and customer support, and human resources.

Access the Guide

The 2025 Canada Salary Guide From Robert Half covers Canadian hiring and compensation trends across the six fields as well, incorporating exclusive data and input from surveys of thousands of Canadian workers and hiring managers, along with salary information for professionals we’ve matched with employers across the country.

Whether you’re launching a job search, actively hiring talent or developing a staffing strategy for your business, there’s no better source of insights into today’s salary and hiring trends.

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