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

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The latest Statistics Canada Labour Force Survey reveals a cooling in Canada's job market for July 2025, with employment holding steady and signs of softening in full-time work and private sector hiring.

Statistics Canada’s latest Labour Force Survey reports that the Canadian unemployment rate was unchanged between June and July 2025, holding at 6.9 per cent. While overall unemployment held firm, the employment rate edged down slightly (-0.2 per cent) to 60.7 per cent, suggesting a modest cooling in labour market momentum. Year-over-year, employment was up by 1.5 per cent, with approximately +307,500 more people working in July 2025 compared to July 2024 – though growth has slowed compared to earlier months.

Job Gains and Losses in July 2025

Canada’s Unemployment Rate

Provincial Unemployment Breakdown July 2025

Employer and Worker Confidence

Numbers You Can Count On

June labour force release 41k jobs decreased, 6.9% unemployment rate, 307.5K 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: June Labour Force Survey

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

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

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

Job Gains and Losses in July 2025

Employment trends across Canadian industries were mixed in July 2025, with notable declines in several key sectors. The information, culture and recreation industry saw the largest drop, shedding roughly 29,000 jobs (-3.5 per cent from June) after gains earlier in the spring. Construction also experienced a setback, losing 22,000 jobs (-1.3 per cent from June) following months of stability. Business, building and other support services fell by 19,000 jobs (-2.8 per cent from June), continuing a downward trend observed over recent months. Health care and social assistance declined by 17,000 jobs (-0.6 per cent from June), reversing gains made in in the month prior – though employment in this sector remains up 1.9 per cent year-over-year.

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

Agriculture: -10,800 jobs lost (-4.8 per cent)

Finance, insurance, real estate, rental and leasing: -6,000 jobs lost (-0.4 per cent)

Public administration: -3,300 jobs lost (-0.3 per cent)

Natural resources: -1,400 jobs lost (-0.4 per cent)

Wholesale and retail trade: -2,500 jobs lost (-0.1 per cent)

Utilities: -500 jobs lost (-0.3 per cent)

*Percentages above represent MoM change

While overall employment remained flat in July 2025, a few sectors posted modest gains. Transportation and warehousing led the way with an increase of 26,000 jobs (+2.4 per cent from June), bringing employment in the sector slightly above its January 2025 level for the first time this year. Educational services also saw growth, adding 22,000 jobs (+1.4 per cent from June), which helped offset losses in other areas. Manufacturing also saw a modest increase of +5,300 jobs (+0.3 per cent from June). These gains, though limited, highlight pockets of resilience in an otherwise cooling labour market.

Canada’s unemployment rate holds at 6.9 per cent

Statistics Canada’s July 2025 Labour Force Survey reported that Canada’s national unemployment rate remained unchanged from June to July, holding steady at 6.9 per cent. For businesses seeking to navigate this evolving labour market landscape, these statistics offer valuable insights for workforce planning and recruitment strategies in the latter half 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 well below the national average:

Business, finance and administration occupations, which includes finance and accounting, HR, and administration and customer service roles: 3.3 per cent (2.8 per cent in June 2025)

Natural and applied sciences and related occupations, which includes technology roles: 2.6 per cent (3.6 per cent in June 2025)

Management occupations, which includes marketing and creative roles: 1.9 per cent (2.1 per cent in June 2025)

Occupations in education, law and social, community and government services, which includes legal roles: 6.0 per cent (2.2 per cent in June 2025)

Customer support roles, which fall outside the above Statistics Canada categories: 4.4 per cent (4.1 per cent in June 2025)

Provincial Unemployment Breakdown July 2025

Unemployment rates by province:

British Columbia: 5.9 per cent (5.6 per cent in June 2025)

Alberta: 7.8 per cent (6.8 per cent in June 2025)

Saskatchewan: 5.0 per cent (4.9 per cent in June 2025)

Manitoba: 5.5 per cent (5.5 per cent in June 2025)

Ontario: 7.9 per cent (7.8 per cent in June 2025)

Quebec: 5.5 per cent (6.3 per cent in June 2025)

New Brunswick: 7.5 per cent (7.3 per cent in June 2025)

Prince Edward Island: 8.8 per cent (8.6 per cent in June 2025)

Nova Scotia: 7.0 per cent (6.7 per cent in June 2025)

Newfoundland and Labrador: 10.5 per cent (9.9 per cent in June 2025)

The July 2025 Labour Force Survey reveals notable regional variations across Canadian provinces, with mixed momentum across the country.

Employment declined on the west coast in Alberta (-17,000; -0.6 per cent from June) and British Columbia (-16,000; -0.5 per cent from June), partly offsetting gains seen in June. In contrast, Saskatchewan posted a modest increase of +3,500 jobs (+0.6 per cent from June), while Manitoba saw a smaller rise of +2,000 jobs (+0.3 per cent from June). Quebec experienced a decline of -14,000 jobs (-0.3 per cent from June), and Ontario held steady with no significant change. In Atlantic Canada, employment levels were relatively stable, with Nova Scotia and Newfoundland and Labrador showing slight increases of +1,800 (+0.3 per cent from June) and +1,000 (+0.4 per cent from June), respectively.

This uneven provincial performance underscores the complexity of Canada’s labour market, where regional economic drivers, such as resource dependency, public sector dynamics, and seasonal factors, 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: June Labour Force Survey

2025 Canada Job Market: May Labour Force Survey

2025 Canada Job Market: April 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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