Canada closed out 2025 with a job market that looks steady on the surface but is quietly tightening underneath. New data from Statistics Canada show the unemployment rate rose to 6.8% in December, even though total employment barely moved. The key driver isn’t layoffs — it’s that more people are actively looking for work, while hiring remains cautious.
In plain terms, employers are holding on to staff but slowing new hires. That marks a shift from recent years when workers had more leverage and job openings were easier to find.
The slowdown is uneven. Young Canadians are under the most pressure, with youth unemployment climbing to 13.3%, making entry-level jobs harder to secure. Older workers aged 55 and over are seeing gains, particularly in essential sectors like health care. Professional and technical services — often attractive to skilled migrants — saw job losses, a sign that businesses are trimming non-essential roles.
Wages are still rising, up 3.4% over the past year, but the pace is easing. For many households, that means pay increases may not stretch as far as expected once living costs are factored in.
A quiet but important trend is the continued reliance on side income. Gig and platform work remains common, especially among recent immigrants, mostly as a way to supplement earnings rather than replace a main job.
For people in the Caribbean and wider diaspora planning to move to Canada, this report is a reality check. Jobs are still available, but competition is increasing, especially for white-collar and entry-level roles. Newcomers may face longer job searches, more contract or temporary work, and greater pressure to accept roles outside their preferred field at first.
This makes preparation critical. Arriving with savings, in-demand skills, and realistic expectations matters more than ever. Sectors tied to essential services — health care, personal services, and certain skilled trades — remain more resilient than office-based roles. Many new arrivals may also rely on part-time or gig work early on to bridge income gaps.
Bottom line
This isn’t a labour market collapse — but it is clearly cooling. For workers already in Canada and those planning to migrate, 2026 looks like a year where flexibility and financial planning matter more than optimism. Job security, emergency savings, and patience will be key as Canada’s economy adjusts to slower growth.