Daily Labour Force Survey October 2025 – Statistics Canada
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Canada’s Labor Market Shows Resilience in October 2025, Despite Slowing Growth
Table of Contents
October data reveals a nuanced picture of Canada’s labour market, with unemployment edging down but employment growth moderating. Key sectors are experiencing shifts, and demographic trends are playing an increasingly significant role.
Key Highlights: October 2025 Labour Force Survey
Canada’s unemployment rate decreased to 6.9% in October 2025, according to Statistics Canada‘s Labour Force Survey. While a slight betterment from previous months, the pace of job creation has demonstrably slowed. This indicates a cooling labour market,potentially signaling a broader economic slowdown.
The total number of employed individuals rose by 15,000, a significantly smaller increase compared to the average monthly gains of 35,000 observed in the first half of 2025.This deceleration is particularly noticeable when considering Canada’s population growth, which remains robust due to immigration.
sectoral Shifts and Regional Disparities
The gains in employment were concentrated in the service sector, specifically in healthcare and social assistance, adding 20,000 jobs. This reflects the ongoing demand for healthcare services driven by an aging population. Conversely, the goods-producing sector experienced a decline of 10,000 jobs, primarily in manufacturing and construction.
Provincially,Alberta saw the largest increase in employment,driven by a modest recovery in the energy sector. However, Ontario and Quebec experienced stagnant employment growth, while Atlantic Canada continued to grapple with labour shortages in key industries like tourism and fisheries.
| Province | Employment Change (Thousands) | Unemployment rate (%) |
|---|---|---|
| Ontario | +2 | 7.1 |
| Quebec | 0 | 6.5 |
| Alberta | +8 | 6.0 |
| British Columbia | +3 | 6.8 |
| Atlantic Provinces | -1 | 8.2 |
Demographic Trends and Labour Force Participation
A key factor influencing the labour market is Canada’s aging population. The participation rate for individuals aged 55 and over has been steadily increasing, partially offsetting the decline in participation among younger workers. This trend is expected to continue as the baby boom generation ages.
Immigration continues to be a vital source of labour force growth. However, challenges remain in effectively integrating newcomers into the labour market, including issues related to credential recognition and language proficiency. Recent policy changes aimed at streamlining the immigration process for skilled workers are expected to have a positive impact in the long term.
Wage growth remained moderate in October, increasing by 3.8% year-over-year. While this provides some relief to workers facing rising inflation, it is still below the rate of inflation, meaning real wages are declining. This is particularly concerning for low-income earners.