In September 2024, Canada's labour market saw a steady increase in employment, with 47,000 new jobs added (+0.2%), while the unemployment rate remained at 5.6%. This signals a slow but consistent growth in the job market, albeit with some challenges persisting.

Big-picture perspective

Statistics Canada reported on Friday, Oct 11 that job growth was concentrated in full-time positions within the private sector, while declines were seen in part-time roles and public sector employment.

Specifically, the private sector gained 61,000 jobs (+0.05), while public sector employment fell by 24,000 (-0.05%) but it was still up over 3.0% compared with the 12 months earlier.

Full-time employment increased by 112,000 (+7.0%), the largest gain since May 2022. Year-over-year, however, part-time employment rose at a faster pace +2.0%0 versus full-time employment (+1.4%).

Sector insights

Employment growth was seen primarily in educational services and health care and social assistance, two sectors that have shown resilience and demand throughout the year. Educational services added 27,000 jobs (+1.7%), a notable rise since January 2024. Health care and social assistance also saw an increase of 25,000 jobs (+0.9%), continuing to lead the job market in growth for the past year, accounting for nearly half of Canada’s net employment gains since September 2023.

However, professional, scientific, and technical services saw a decline of 16,000 jobs (-0.8%) in September, though year-over-year, the sector still shows positive growth. This mixed result underscores the varied performance across different industries, with certain sectors feeling the effects of economic uncertainty more than others.

Provincial Breakdown
Several provinces experienced employment gains in September. Alberta added 13,000 jobs (+0.5%), while Nova Scotia and Manitoba saw increases of 5,000 and 4,400 jobs, respectively. Conversely, Newfoundland and Labrador saw a decrease of 2,400 jobs (-1.0%), pushing its unemployment rate up to 10.4%, the highest in the country.

Key Regional Challenges

Despite the gains, challenges remain, particularly in the rising unemployment rates across several provinces and large metropolitan areas. Ontario, for example, saw its unemployment rate rise to 6.9%, while Toronto posted an unemployment rate of 8.0%, indicating ongoing challenges in Canada’s largest job markets. Nationally, the participation rate declined slightly to 60.7%.

In September 2024, Canada's labour market saw steady job growth, with 47,000 new positions added (+0.2%), and the unemployment rate holding at 5.6%. Despite this growth, there are some ongoing challenges that recruiters and employers should keep in mind.

Labour Force Participation Rate Drops Slightly

One notable trend in September was a slight decline in the labour force participation rate, which fell to 60.7%. This dip, though minor, reflects a broader pattern of slower re-entry into the workforce. Several factors may contribute to this, including an aging population, early retirements, and challenges related to attracting younger workers into the job market. This shift suggests that employers may need to rethink their strategies for engaging passive candidates, especially as competition for talent intensifies.

Spotlight: Canadian-Born Workers vs. Immigrants
The September 2024 labour report also highlighted key differences in wages and employment experiences between Canadian-born workers and immigrants. On average, Canadian-born workers saw a 6.0% increase in hourly wages over the past year, while recent immigrants (those who landed in Canada within the last five years) saw a more modest increase of 1.3%. More established immigrants fared better, with a 6.3% wage increase. These discrepancies can make it harder for new immigrants to secure jobs that align with their skill sets and qualifications, suggesting a need for better integration programs and employer support.

"The September 2024 labour report shows promising job growth, but the challenge remains in filling key roles with the right talent. As the labour force participation rate drops and competition for skilled candidates rises, it's more critical than ever for businesses to engage with potential candidates in new and meaningful ways,” Craig Brown, CEO, Agilus Work Solutions commented. “At Agilus, we're helping our clients navigate these shifts by focusing on flexible talent strategies that adapt to both short-term needs and long-term growth."

Recruitment Firm Insights and Recommendations

For recruitment firms, these trends highlight the importance of flexibility and innovation. Employers should consider:

1. Invest in upskilling and reskilling programs to tap into underutilized talent pools, such as recent immigrants, who may need additional training to adapt to Canadian job market demands.
2. Improve employer branding to stand out in a competitive market, especially when targeting passive candidates who are not actively looking for new opportunities.
3. Leverage technology and data-driven hiring strategies to more efficiently match candidates with roles that fit their skill sets, but use the time saved to build human connections and understand your candidate’s aspirations to ensure there is a culture fit as well, especially in limited markets where competitors may entice candidates or newly hired with a competing offer.

Looking Ahead

While the September labour report reflects steady job creation, the uneven performance across sectors and regions suggests that Canada's economic recovery remains fragile. Sectors such as healthcare continue to thrive, but others, like technical services, face more volatility. As employers adapt to these shifts, job seekers may need to adjust their strategies to align with industries showing the most resilience and growth.

This report highlights the need for both employees and employers to remain flexible and prepared for ongoing changes in the labour market as Canada navigates its economic recovery. For a detailed breakdown of the numbers and trends, check out the full Statistics Canada Labour Report for September 2024.

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