September 5, 2025: Data, Analysis and Opinion from the Latest Statistics Canada Employment Release
Canadian Employment
Employment fell by approximately 65,500 jobs in August 2025, defying the expected slight rise of about 5,000 jobs.1 The unemployment rate rose modestly in the same time to 7.1% across the country. Adding those losses to the 41,000 jobs lost in July, that means all the job gains from June have now been lost, adding up to fewer total jobs than six months ago.
Demographic Shifts
Core-aged (25 to 54 years old) employment suffered losses in August, somewhat more so for men (-0.8%) than women (-0.5%). Even as more part-time jobs were lost, average hourly wages did rise by 3.2% to $36.31 per hour on a year-over-year basis (compared to August 2024).
Industry Breakdown
Employment decreased across several industries in August, led by professional, scientific and technical services (-1.3%), transportation and warehousing (-2.1%), and manufacturing (-1.0%). Construction was among the few outliers, increasing in employment (+1.1%).
Regional Employment
There were declines in most provinces, particularly Ontario (-0.3%), British Columbia (-0.5%) and Alberta (-0.6%). Only Prince Edward Island, Nunavut and the Northwest Territories saw a stable or declining unemployment rate in August.
Conclusion
Canadian employment fell mainly due to declines in part-time work. Losses were concentrated among core-aged workers, with notable declines in professional, scientific and technical services, while construction saw gains.
September 5, 2025: Featured Insight & Analysis on the Jobs Market
Student Unemployment Hits Highest Level Since 2009
From May to August, the Labour Force Survey (LFS) collects labour market information from students who attended school full time in March and who intend to return to school full time in the fall. The average rate reached 17.9%—the highest since 2009, excluding 2020. Rates have risen each summer since 2022, with men (19.2%) facing higher unemployment than women (16.8%).
As Henry Goldbeck notes, “educated experienced professionals are going to still be in demand but people with less experience and new grads are going to have a bit of a harder time,”2 reflecting the challenges young job seekers continue to face.
One-Third of Canadians Work Multiple Jobs to Cover Essentials
In August 2025, 5.4% of workers held more than one job, similar to past years. Among them, one-third (33.6%) cited paying for essential needs as the main reason, while another third (33.6%) did so for extra income. Fewer (16.6%) worked multiple jobs out of passion, up from 14.5% in 2023.
Nearly 1 in 10 Workers Want More Hours
In August 2025, 8.8% of employed Canadians were underemployed, wanting more hours at the same pay, with rates much higher among part-time workers than full-time. Underemployment was highest in Newfoundland and Labrador (11.3%), Ontario (9.6%), and Alberta (9.4%). Over half (55.7%) of these workers sought more hours to cover expenses, while others aimed to save for big purchases. At the same time, 15.9% of workers preferred fewer hours, mainly for more leisure, family responsibilities, or to reduce stress.
Pressure Behind Canada’s Employment Downturn
Recent labour force data highlights the financial strain that Canadian workers are facing. These trends point to a widening gap between wages and the cost of living. Workers are increasingly relying on multiple jobs or seeking more hours to stay financially afloat, while others feel overextended and want fewer hours due to stress.
For recruiters and employers, this dual reality underscores the importance of offering competitive pay, flexible hours, and meaningful work arrangements to attract and retain talent in a cooling labour market. Goldbeck urges potential employers to consider the uncertainty in the market when searching for candidates – “one of the main things that happens whenever there’s economic uncertainty, is people are less eager to move to a new situation.”
