Canada's labour market is undergoing a significant shift, as new data confirms a continued and substantial decline in available jobs. The era of widespread labour shortages appears to be firmly in the rearview mirror.
A Sustained Downward Trend in Job Openings
According to the latest report from Statistics Canada, the total number of job vacancies in the country fell to 492,500 in the third quarter of 2025. This represents a 2.8 per cent decline from the previous quarter, marking the third consecutive quarterly drop this year and the 13th consecutive decline since the peak of the market.
Job vacancies hit a historic high of 985,900 in mid-2022, a period characterized by intense competition for workers across many sectors. The consistent downward trajectory since then signals a fundamental change, moving the economy from a state of labour shortage to one of job shortage.
Breaking Down the Third Quarter Data
The Job Vacancy and Wage Survey provides a detailed look at where the declines are occurring. The drop was primarily driven by a decrease in full-time positions, which fell by approximately 11,200, or three per cent. In contrast, vacancies for part-time roles remained largely stable over the quarter.
A similar pattern emerged when examining job permanence. Openings for permanent positions dipped by 3.1 per cent, while temporary job vacancies saw little movement. The year-over-year comparisons are even starker, illustrating the scale of the market's cooling. Compared to the third quarter of 2024, full-time vacancies were down 12.3 per cent (5,800 jobs), and part-time openings fell 3.8 per cent (5,100 jobs).
Key Indicators and Sector-Specific Impacts
Despite the falling number of open positions, one key metric held steady. The job vacancy rate—which measures vacant jobs as a proportion of total labour demand—remained unchanged at 2.8 per cent for the quarter. This stability suggests that while absolute numbers are down, the relationship between job openings and the pool of available workers has not dramatically shifted in the short term.
Another positive signal for employers is the decline in long-term vacancies. Jobs that remained open for more than 90 days accounted for only 27.1 per cent of all vacancies in Q3 2025, a notable decrease from 31.6 per cent during the same period last year. This indicates that businesses are finding it somewhat easier to fill positions, likely due to a greater supply of available labour.
The decline in vacancies was not uniform across all sectors. The most significant drops were observed in several key occupational groups:
- Healthcare
- Trades and skilled labour
- Transportation and warehousing
- Business and administrative services
In contrast, sectors like manufacturing and utilities recorded more stable figures, showing less volatility in their hiring needs. This data paints a picture of a normalizing job market where the intense competition for workers in previously strained sectors is easing, giving employers more options and potentially altering the dynamics of wage growth and hiring practices for the foreseeable future.
