October 2025 Labour Force Survey – Insights for Canadian Employers
Key Highlights (Seasonally Adjusted)
- Employment: +67,000 (+0.3%); employment rate 60.8%
- Unemployment: 6.9% (–0.2 ppts)
- Average hourly wages: $37.06, up 3.5% year-over-year
- Hours worked: –0.2%, with ~87,000 employees affected by labour disputes
The Composition Story: Where the Jobs Actually Were
The monthly Stats Canada Labour Market report was published on Friday, November 7th. October’s employment gain was driven entirely by part-time work (+85,000; +2.3%), deflecting a loss of 17,000 full-time positions. While the private sector added 73,000 jobs (its first increase since June) the gains were concentrated in service-producing industries such as:
- Wholesale and retail trade: +41,000
- Transportation and warehousing: +30,000
- Information, culture, and recreation: +25,000
- Utilities: +7,600
Meanwhile, construction employment declined by 15,000, and goods-producing industries overall are down 54,000 jobs (–1.3%) year-to-date. Services have added 142,000 jobs (+0.8%) in the same period but were heavily weighted in part-time roles as mentioned above.
Why this matters: Headline employment gains are coming from lower-hour, lower-wage sectors; not the full-time, productivity-generating work that grows GDP. Employers are hiring, but cautiously, relying on part-time and contract labour to preserve flexibility.
Who Found Work and Who Didn’t
- Core-aged men (25–54): +33,000 (+0.5%)
- Core-aged women: Little change after September’s strong gains
- Youth (15–24): +21,000 (+0.8%), the first increase since January. Again, likely benefitted from the part-time numbers.
- Older workers (55+): Unemployment fell to 5.3%, reversing September’s uptick
The unemployment rate dipped to 6.9% but remains close to its highest point since 2016 (excluding pandemic years). The employment rate of 60.8% is still below early 2025 levels, meaning fewer working-age Canadians are employed than at the start of the year.
Provincial Highlights
- Ontario: +55,000 (+0.7%), unemployment 7.6%
- Quebec: Steady employment, unemployment 5.3%
- Newfoundland & Labrador: +4,400 (+1.8%) rebound
- Nova Scotia: –4,400 (–0.8%), unemployment up to 6.7%
- Manitoba: –4,000 (–0.5%), unemployment 5.8%
Ontario’s strength (mostly in retail, transport, and logistics) offset weakness in other provinces, though much of it was part-time.
Pay and Productivity
Average hourly wages rose 3.5% year-over-year to $37.06, a modest improvement over September. However, total hours worked fell 0.2%, partly due to strikes and lockouts, particularly in Alberta’s education sector.
Wage growth is below inflation for many Canadians, meaning paycheques still aren’t stretching as far. This is a key signal that job quantity is outpacing job quality.
Financial Wellbeing: Slightly Better, Still Strained
Canadians’ financial outlook improved modestly: 27.7% reported difficulty meeting household expenses, down from 35.5% in 2022. Yet 37% of renters continue to struggle. The October report suggests the recovery is uneven; progress on paper, but many households still feel the affordability pinch.
What Employers Should Watch
1. Labour Availability Rising (Skills Mismatch Widening)
More Canadians are looking for work, but not always in the sectors driving growth. Upskilling, AI literacy, and career mobility will determine hiring success in 2026 — especially for employers anticipating future skill shortages.
2. Full-Time Hesitation Signals Uncertainty
Many employers remain cautious about committing to long-term hiring while inflation and interest rate paths remain unclear. But this may be the moment to zig when others zag — securing valuable talent now rather than competing for it later when the market tightens again.
3. Private Sector Leadership Needed
While recent public-sector hiring has supported employment stability, sustained economic growth depends on renewed private-sector momentum. Employers can help drive productivity by investing in innovation, workforce alignment, and strategic partnerships that strengthen Canada’s overall labour market.
Craig Brown, President & CEO of Agilus Work Solutions, offers this reflection for businesses in Canada: “It’s not the volume of jobs that strengthens an economy, but the quality and structure of those jobs. Canada’s growth will depend on employers who invest in skills, innovation, and workforce models that balance strategic contract and long-term full-time roles. This strategy creates both productivity and resilience.”
Bottom Line
Canada’s job market is adding jobs but not momentum. Employment growth is skewed toward part-time, service, and public roles. These are valuable for stability, but insufficient to lift national productivity. The path forward depends on employers who invest in skills, innovation, and a balance of strategic contract and sustainable full-time work.
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FAQs
Q1. Why did Canada’s unemployment rate fall if full-time jobs declined?
Because job creation came mainly from part-time and public-sector work. The total number of employed people rose, but many of those roles were lower-hour or temporary. That’s why unemployment dipped to 6.9%, even though full-time work fell by 17,000.
Q2. What does the shift toward part-time work mean for employers?
It signals hesitation in the private sector. Many companies are responding to uncertainty by hiring part-time or contract staff to stay agile. This can fill immediate gaps but slows skills development and long-term productivity growth.
Q3. Which industries are driving employment right now?
October gains were led by wholesale and retail trade, transportation and warehousing, and information, culture, and recreation. In contrast, construction and manufacturing weakened. This is a concerning trend since these sectors contribute most to GDP and export strength.
Q4. Why does it matter that goods-producing jobs are declining?
Goods-producing industries (like construction, manufacturing, and natural resources) have higher productivity multipliers. They generate more output per worker. A decline of 54,000 jobs year-to-date in these sectors signals slower economic growth ahead.
Q5. How can employers respond to these labour market shifts?
Focus on skills-based hiring, training, and flexible workforce design. Strategic use of contract and contingent talent can help employers stay agile during uncertain times, while converting reliable part-time or contract workers into structured full-time roles builds long-term stability and output. Partnering with a specialized recruiter like Agilus ensures access to the right mix of contract and permanent professionals – improving productivity, not just headcount for a prosperous Canadian economy.
FAQs
Q1. Why did Canada’s unemployment rate fall if full-time jobs declined?
Because job creation came mainly from part-time and public-sector work. The total number of employed people rose, but many of those roles were lower-hour or temporary. That’s why unemployment dipped to 6.9%, even though full-time work fell by 17,000.
Q2. What does the shift toward part-time work mean for employers?
It signals hesitation in the private sector. Many companies are responding to uncertainty by hiring part-time or contract staff to stay agile. This can fill immediate gaps but slows skills development and long-term productivity growth.
Q3. Which industries are driving employment right now?
October gains were led by wholesale and retail trade, transportation and warehousing, and information, culture, and recreation. In contrast, construction and manufacturing weakened. This is a concerning trend since these sectors contribute most to GDP and export strength.
Q4. Why does it matter that goods-producing jobs are declining?
Goods-producing industries (like construction, manufacturing, and natural resources) have higher productivity multipliers. They generate more output per worker. A decline of 54,000 jobs year-to-date in these sectors signals slower economic growth ahead.
Q5. How can employers respond to these labour market shifts?
Focus on skills-based hiring, training, and flexible workforce design. Strategic use of contract and contingent talent can help employers stay agile during uncertain times, while converting reliable part-time or contract workers into structured full-time roles builds long-term stability and output. Partnering with a specialized recruiter like Agilus ensures access to the right mix of contract and permanent professionals — improving productivity, not just headcount for a prosperous Canadian economy.