Where Data Tells the Story
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Canada’s labour market has weathered major shocks over the past 25 years, from the Great Recession to the COVID-19 pandemic and 2025 is proving to be another difficult year. Between January and August 2025, only 38,000 jobs were added, while unemployment climbed to a YTD average of 6.8%, the highest since the pandemic recovery.
A big factor this time isn’t just domestic weakness but global headwinds. Heightened trade uncertainty with the U.S., including new tariffs and strained cross-border supply chains, has weighed on exports, dampened investment, and curbed hiring in key sectors like manufacturing and transportation. Combined with softer consumer demand at home, these pressures have stalled job creation and made employers cautious.
The latest slowdown signals that Canada’s employment challenges are no longer just cyclical setbacks but increasingly shaped by structural pressures, with global trade tensions adding a new layer of vulnerability to the economy.