Canada’s Job Market Cools in July with 41,000 Fewer Positions, Youth Bear the Brunt

Canada’s labor market experienced a setback in July, shedding 40,800 net jobs and marking a reversal from recent gains, according to seasonally adjusted data from Statistics Canada’s Labour Force Survey. The unemployment rate held steady at 6.9%, as the number of unemployed individuals rose modestly by 7,700 to 1.56 million. This stability masks underlying pressures, particularly among younger workers, amid ongoing population growth and economic uncertainties. Below are some key insights and tips on how to navigate the current trends in canada’s labor market :

Key Insights from the July 2025 Labour Force Survey

1. Overall job losses, but uneven impact – While Canada shed ~41,000 jobs, the bulk came from youth (15–24 years) losing over 33,000 positions, especially in full-time roles.
2. Mismatch with population growth – Employment grew +1.5% over the year, but population expanded +2.1%, meaning more competition for fewer opportunities.
3. Gender gap – Women in the 25–54 prime working group lost more jobs compared to men.
4. Older workers fared better – Workers 55+ actually saw small job gains, suggesting experience is valued in a tight economy.
5. Sectors not detailed here but likely uneven – service industries (retail, hospitality, food service) usually account for youth employment volatility.

Tips for Job Seekers & Workers

For Youth (15–24):

• Diversify job search – Look beyond traditional youth-heavy industries (retail, food service) and explore internships, co-ops, or government youth programs that may provide stability.
• Upskill quickly – Short certifications in digital marketing, coding, data entry, customer service software, or trades can give you an edge.
• Leverage part-time opportunities – Since part-time jobs increased, consider flexible roles while building long-term experience.

For Women in Core Age (25–54):

• Tap into female-focused programs – Federal/provincial initiatives often support women returning to or advancing in the workforce (e.g., wage subsidies, mentorship).
• Negotiate flexibility – Hybrid and remote roles may remain available in office/admin, finance, and tech sectors.
• Consider growth sectors – Healthcare, education, and professional services continue to show long-term demand despite short-term cooling.

For Older Workers (55+):

• Capitalize on demand for experience – Your group is seeing net job gains. Highlight reliability, mentorship ability, and specialized skills in applications.
• Flexible/consulting roles – Employers may prefer hiring seasoned workers on contract rather than full-time.

Immigration & International Talent Context

• International workers should be strategic – Cooling job numbers mean securing an LMIA-based offer or entering via programs like Express Entry (with in-demand skills) will be more competitive.
• Target shortage sectors – Healthcare, construction, IT, and skilled trades remain priority areas for Canada’s immigration policy.
• Regional opportunities – Some provinces (e.g., Atlantic Canada, Prairies) still face worker shortages despite national slowdowns.

General Strategies to Navigate a Cooling Market

1. Broaden search geographically – Smaller cities or less-saturated provinces may offer better chances than Toronto or Vancouver.
2. Network actively – Referrals and personal connections are more crucial when competition intensifies.
3. Stay adaptable – Accepting contract, temp, or part-time work can open doors to permanent roles.
4. Focus on recession-resilient industries – Healthcare, government, energy, logistics, and education typically hold steadier in downturns.
5. Financial resilience – For those affected, cutting costs and considering side hustles (gig economy, freelancing) can buffer income gaps.