After two months of decline, Canada’s job market made a strong comeback in September 2025, adding 60,000 new jobs and raising the employment rate to 60.6%, according to Statistics Canada. This increase was driven by gains in manufacturing, health care, and agriculture, signalling renewed momentum in the country’s labour market. Despite this boost, the unemployment rate held steady at 7.1%, as more Canadians re-entered the labour force in search of work.

Full-Time Jobs Lead the Rebound

The surge in employment was mainly fueled by full-time positions, which increased by 106,000 jobs (+0.6%), while part-time work fell by 46,000 (-1.2%). The biggest gains were among core-aged workers (25–54 years), particularly women, who saw employment rise by 76,000 (+1.2%). For men in the same age group, jobs grew by 33,000 (+0.5%), reversing the declines seen in previous months.

Alberta Leads the Provinces in Job Growth

Alberta recorded the strongest employment gain with 43,000 new jobs (+1.7%), followed by New Brunswick (+4,700) and Manitoba (+3,900). Meanwhile, Newfoundland and Labrador experienced a small drop of 2,200 jobs, while Ontario and Quebec saw little overall change. Alberta’s growth was largely supported by manufacturing and agriculture, reflecting its expanding economic base.

Key Sector Highlights

The September employment surge was powered by several industries:

• Manufacturing: +28,000 jobs (+1.5%)
• Health care & social assistance: +14,000 jobs (+0.5%)
• Agriculture: +13,000 jobs (+6.1%)
• Wholesale & retail trade: -21,000 jobs (-0.7%)

Average hourly wages increased by 3.3% year-over-year, reaching $36.78, showing stable pay growth and strong demand for skilled workers.

Youth and Older Workers Face Challenges

While overall employment grew, workers aged 55 and above saw a decline of 44,000 jobs (-1.0%), and youth employment remained largely unchanged.

The youth unemployment rate rose to 14.7%, the highest since 2010 (excluding pandemic years), largely due to weaker hiring among students.

Skills Mismatch and Overqualification Rising

Statistics Canada also reported that 16.4% of postsecondary-educated workers are employed in jobs unrelated to their studies up from last year. Among recent immigrants, 34.7% said they were overqualified for their current roles, compared to 18.5% of Canadian-born workers. This growing skills mismatch highlights the need for better job alignment and credential recognition, particularly for newcomers.

Employment Growth Strengthens Canada’s Economic Outlook

The employment increase in September 2025 marks a positive shift in Canada’s job market, driven by strong performances in Alberta and the manufacturing sector. While some challenges remain, the overall trend suggests renewed stability and expanding opportunities for both local and international talent.

For professionals and skilled immigrants, this trend signals a great time to explore employment and immigration to Canada, a country that continues to value skill, education, and opportunity.