VPWS Employment Update: January 2025
The Canadian labor market started 2025 on a high note, marking the third consecutive month of employment growth. January saw employment rise by 76,000 jobs (+0.4%), pushing the employment rate up to 61.1%, while the unemployment rate edged down slightly to 6.6%.
Key Highlights from January’s Employment Trends
Who’s Getting Hired?
Youth (15-24 years old) led employment growth with 31,000 new jobs (+1.1%).
Core-aged workers (25-54 years old) also saw gains, with 36,000 more jobs for women (+0.5%) and 28,000 for men (+0.4%).
The private sector showed strong growth, adding 57,000 jobs (+0.4%), while self-employment increased by 27,000 (+1.0%).
Which Industries Are Booming?
Manufacturing led the way with 33,000 new jobs (+1.8%), showing strength in Ontario, Quebec, and British Columbia.
Professional, scientific, and technical services continued its upward trajectory, adding 22,000 jobs (+1.1%).
Additional growth was seen in construction (+19,000 jobs, +1.2%), accommodation and food services (+15,000, +1.3%), and transportation and warehousing (+13,000, +1.2%).
Provincial Standouts
Ontario saw the biggest gains with 39,000 new jobs (+0.5%), continuing December’s momentum.
British Columbia added 23,000 jobs (+0.8%), and its employment rate climbed to 61.3%.
New Brunswick recorded 2,900 new jobs (+0.7%), with its unemployment rate dropping 1.3 percentage points to 6.4%.
Wages & Working Hours
The average hourly wage increased 3.5% year-over-year, reaching $35.99.
Total actual hours worked increased 0.9% for the month and 2.2% year-over-year, signaling greater workforce productivity.
What This Means for Job Seekers & Employers
With employment on the rise for three consecutive months and wages growing, the job market remains competitive but promising. Employers should take note of the increased hiring in high-skill industries like manufacturing and professional services, while job seekers, especially in youth demographics, should leverage this period of growth to explore new opportunities.
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