Canadian payroll employment rises 0.1% in May 2025, reflecting modest but steady growth in key sectors despite signs of a cooling labour market. According to Statistics Canada, 15,300 jobs were added in May, with notable gains in health care, retail trade, and construction. However, job vacancies dropped to their lowest level since 2017, indicating shifting hiring patterns that can influence future immigration trends.
Payroll Employment Growth Across Key Sectors
The May increase was driven by:
- Health care and social assistance: +6,200 jobs
- Retail trade: +5,600 jobs
- Construction: +1,200 jobs
These gains offset losses in manufacturing (-6,400), wholesale trade (-2,900), and administrative services (-3,500). The health sector alone has grown by over 236,000 jobs since 2022, signaling a continued demand for healthcare professionals, a sector heavily supported by immigration programs.
Job Vacancies Decline: Lowest Since 2017
Job vacancies fell 4.1% to 478,200, marking the lowest level in eight years. With fewer openings and more unemployed workers (3.3 unemployed persons per job vacancy), competition for available jobs has increased. This shift indicates that while certain industries are hiring, others are scaling back or focusing on retaining existing talent.
Average Weekly Earnings and Work Hours
Average weekly earnings increased by 3.3% year-over-year to $1,294, slower than April’s 4.3% growth. Meanwhile, average weekly hours worked slightly decreased to 33.3 hours. These numbers suggest wage growth is stabilizing, possibly due to reduced demand in sectors like manufacturing and wholesale trade.
Why It Matters for Newcomers and Immigration Policy
For prospective immigrants, these numbers provide valuable insight into where opportunities are growing. Canada continues to prioritize healthcare, skilled trades, and technology through immigration programs like Express Entry and Provincial Nominee Programs (PNPs). As job vacancies tighten, newcomers with in-demand skills may have a competitive advantage in securing employment and permanent residency.
Canadian Payroll Employment Trends
Canadian payroll employment rises 0.1% in May 2025, highlighting gradual labour market changes with sector-specific growth and a sharp drop in vacancies. For newcomers, understanding these shifts is crucial to aligning skills with demand and improving settlement outcomes.
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