Holders with Work and Study Permits experience significant employment growth due to Canada’s active hiring.

January 2023 saw a considerable increase in overall employment, as 150,000 jobs (+5% of total employment) across Canada were filled in the first month of 2023.

The strong surge in hiring yielded big increases in employment for many groups (primarily workers aged 25–54), with non-permanent residents (NPRs)—those holding either a study or work permit—seeing significant increases in labor force engagement.

The national unemployment rate of Canada went to a historically low 5%; little changed since December 2022. Immigrants in Canada held an average unemployment rate of 5.88% at the end of 2022, reflecting the wealth of job opportunities in Canada and a great work opportunity for Canadians and for those who are looking to get a job in Canada from outside the country.

 A recent tweet from Carla Qualtrough

(Member of Parliament for Delta | Minister of Employment, Workforce Development & Disability Inclusion )

Canada gained 150,000 jobs in January, as our unemployment rate remained at a near-record low of 5%. We’ve now recovered 126% of pandemic job losses.

With Canadians back at work, we’re focused on building the strong, skilled, and diverse workforce we need to continue our strong recovery.

In January, NPRs filled 79,000 positions!!

International students in Canada with a valid study permit can now work an unlimited number of hours during school semesters until December 31st, 2023, as of November 2023—likely employees to this increase. According to the most recent census data, NPRs currently make up the largest percentage of Canada’s population ever, and they also have record-high rates of participation in the workforce.

What industries were NPRs hired in?

The increases in NPR employment were reflected in multiple areas. The industries that saw the greatest increases were:

• Professional, scientific, and technical services (+10,349 people hired);
• Retail trade (+9,717 people hired);
• Accommodation and food services (+8,848 people hired); and
• Health care and social assistance (+7742 people hired).

This group’s overall employment share has increased to 3.4%, highlighting its significance to the Canadian labor market. The most recent report on job openings, from November, showed a modest decline in overall vacancies, although three of the aforementioned industries (aside from retail trade) continue to have a high number of unfilled positions and a chronic demand for labor.

What industries saw huge hiring gains in January, and are there still jobs in these industries?

The first month of 2023 saw strong hiring gains in the:

• Wholesale and retail trade (59,000 jobs filled, hiring for 128,960 vacancies collectively);
• Health care and social assistance (40,000 jobs filled, hiring for 131,775 vacancies);
• Educational services (18,000 jobs filled, hiring for 20,180 vacancies);
• Construction (16,000 jobs filled, hiring for 79,025 vacancies); and
• Other services (16,000 jobs filled, hiring for 34,985 vacancies).

In addition, there were 17,000 unemployed in the transportation and warehousing sector, which is currently looking to fill 46,635 openings. The average hourly wage for workers in Canada is currently 33.01 CAD, but average buying power has decreased since wage growth has lagged behind rising inflationary pressures since the Bank of Canada raised interest rates at the beginning of the month.

Note that all vacancy figures are taken from the November 2022 job vacancy report and adjusted for seasonality.

Numerous sectors of the business report urgent and ongoing employment openings. For instance, one of the few industries in November that witnessed a rise in vacancies was construction. As Canada works to address the ongoing labor shortages that have beset this sector since the COVID-19 pandemic started, a lack of healthcare personnel remains an issue for the nation.

The government’s recent policy adjustments reflect how serious this situation is. As a result, Canada has made it simpler for temporary foreign healthcare workers to enter and work in Canada, extending these measures to employees in carer pilot programs as well. Immigration accounts for over 100% of the growth in the Canadian labor force. Canada has expanded its immigration possibilities concurrently.

Which provinces saw the greatest increases in hiring?

In January, the provinces that experienced the greatest increases in hiring included:

• Ontario (+63,000 positions filled);
• Quebec (+47,000 positions filled);
• Alberta (+21,000 positions filled);
• Nova Scotia (+9,400 positions filled); and
• Saskatchewan (4,500 positions filled).

In contrast, Newfoundland and Labrador saw an increase in job vacancies as employment decreased by 2,300 positions. Provinces address their specific labor shortages through the Provincial Nominee Programs (PNPs)—which today are the main pathway of economic immigration to Canada.

As the year progresses, job vacancies, specific in-demand occupations, and hiring in each province will help determine the specifics of their PNPs. Express Entry-based programs are also moving towards targeted draws, with in-demand professions being one of the key considerations towards receiving a targeted invitation to apply (ITA) under this policy.