Canada’s hiring pressures ease despite vacancy uptick

Canadian employers opened more positions in the first quarter of 2026, but signs of labour market pressure continued to ease, with fewer long-standing vacancies, a stable vacancy rate and slower growth in wages offered to new hires, according to Statistics Canada.

Job vacancies increased by 11,800 (+2.4%) to 506,700 in the first quarter, the first quarterly increase since the second quarter of 2022. The gain followed a period of declining vacancies through much of 2025.

In the third quarter of 2025, vacancies fell by 14,000 (-2.8%) to 492,500, the third consecutive quarterly decrease, according to Statistics Canada's Job Vacancy and Wage Survey.

Total labour demand—the sum of filled and vacant positions—increased by 60,900 (+0.3%) in the first quarter of 2026, driven by higher vacancies and a gain of 49,100 (+0.3%) in payroll employment.

Vacancy rates hold steady

Despite the increase in openings, the national job vacancy rate remained at 2.8% in the first quarter, unchanged from the previous quarter and down 0.1 percentage points from a year earlier, according to Statistics Canada.

The proportion of long-term vacancies—positions where recruitment efforts had continued for 90 days or more—fell to 28.0%, down from 31.2% in the first quarter of 2025.

The stability of the vacancy rate aligns with findings from the Canadian Federation of Independent Business. In its Main Street Quarterly report, the CFIB said the private-sector job vacancy rate remained at 2.8% in the first quarter of 2026, the fifth consecutive quarter at that level. The organization estimated 391,300 private-sector vacancies nationwide and reported little year-over-year change across provinces, sectors and business sizes.

Unemployment measures improve

The unemployment-to-job vacancy ratio was 3.0 in the first quarter, compared with 3.1 in the fourth quarter of 2025.

Canada's unemployment rate was 6.6% in the first quarter, down from 6.8% in the previous quarter. Separate Labour Force Survey data for May 2026 showed the unemployment rate at 6.6%, with employment increasing by 88,000 and full-time employment rising by 154,000.

Among educational groups, the unemployment-to-job vacancy ratio remained highest for people with a bachelor's degree or higher at 5.0. The ratio was 3.1 for people with a high school diploma or less, 3.0 for those with other non-university certificates and university certificates below a bachelor's degree, and 2.3 for workers holding a trade certificate or diploma.

Compared with a year earlier, vacancies declined in three of four educational categories. Positions requiring other non-university certificates and university certificates below a bachelor's degree fell by 7,300 (-7.1%), while vacancies requiring a bachelor's degree or higher decreased by 6,000 (-6.9%). Vacancies requiring a trade certificate or diploma fell by 3,100 (-4.6%). Positions requiring a high school diploma or less recorded no significant year-over-year change, according to Statistics Canada.

The figures follow declines recorded throughout 2025. In the third quarter of last year, Statistics Canada reported lower vacancy levels across all educational categories, with the unemployment-to-job vacancy ratio rising for several groups, including workers with bachelor's degrees.

Offered wage growth moderates

The average offered hourly wage for vacant positions increased by 2.2% (+$0.65) year over year to $29.55 in the first quarter, following a 3.4% increase in the fourth quarter of 2025.

By comparison, average hourly wages for all employees increased by 4.0% in the first quarter. Statistics Canada reported that, when holding the occupational composition of vacancies constant at first-quarter 2025 levels, average offered hourly wages increased by 3.2% year over year.

The moderation in offered wage growth follows a pattern seen during 2025. Statistics Canada reported average offered hourly wage growth of 3.3% in the third quarter of 2025, down from 4.5% in the second quarter and 6.1% in the first quarter.

The agency also reported that the average hourly reservation wage among unemployed people who had worked during the previous year was $27.75 in February and March 2026, up 6.5% from the same period in 2024. The average offered hourly wage for vacant positions was $29.55, up 8.4% from the first quarter of 2024.

From the first quarter of 2024 to the first quarter of 2026, reservation wages increased by 10.0% to $24.25 among unemployed people with a high school diploma or less and by 8.6% to $30.20 among those with a trade certificate or diploma. Among workers with a bachelor's degree or higher, reservation wages increased by 3.6% to $32.70.

Sales and service lead quarterly gains

Job vacancies increased in five of the 10 broad occupational groups in the first quarter.

Sales and service occupations recorded the largest increase, rising by 8,400 (+5.8%) to 153,000 vacancies. It was the first quarterly increase for the category since the fourth quarter of 2021. Vacancies also rose in trades, transport and equipment operators and related occupations (+4,900; +5.3%) and natural and applied sciences and related occupations (+1,500; +4.0%), according to Statistics Canada.

Within sales and service occupations, the largest year-over-year increases were among store shelf stockers, clerks and order fillers (+2,100 to 6,800), food counter attendants, kitchen helpers and related support occupations (+1,500 to 24,400), and cashiers (+900 to 4,200). The largest declines were among cooks (-1,300 to 9,000) and technical sales specialists in wholesale trade (-600 to 2,900).

Health occupations recorded a quarterly decline, with vacancies falling by 3,300 (-5.0%) to 62,700, the lowest level since the first quarter of 2020.

Compared with a year earlier, health occupations were down by 12,000 (-16.0%). The largest decreases were among registered nurses and registered psychiatric nurses (-3,800 to 17,100), nurse aides, orderlies and patient service associates (-2,600 to 13,500), and licensed practical nurses (-2,500 to 7,500). Together, those occupations accounted for 60.7% of all health vacancies in the quarter, according to Statistics Canada.

Across all occupational groups, vacancies declined year over year in five of the 10 broad categories. Occupations in education, law and social, community and government services were down by 6,300 (-12.6%), while manufacturing and utilities was the only broad occupational group to record an increase (+1,700; +9.5%).

Provincial trends remain mixed

Job vacancies increased in Ontario (+8,800 to 177,300), British Columbia (+4,100 to 82,800), Alberta (+2,900 to 64,100) and Yukon (+200 to 900) during the quarter, according to Statistics Canada.

Quebec was the only province to post a quarterly decline, with vacancies falling by 3,900 to 113,600. Vacancies in the remaining provinces and territories were little changed.

On a year-over-year basis, the job vacancy rate declined in 18 economic regions and increased in seven. The largest decreases were recorded in Parklands and North, Manitoba (-1.7 percentage points to 3.5%), Abitibi-Témiscamingue, Quebec (-1.4 percentage points to 3.3%), and Kootenay, British Columbia (-0.9 percentage points to 3.3%).

The largest increases were recorded in Yorkton—Melville, Saskatchewan (+1.0 percentage points to 4.7%), Edmundston—Woodstock, New Brunswick (+1.0 percentage points to 3.4%), and Yukon (+0.7 percentage points to 4.4%).

While vacancies increased in the first quarter of 2026, levels remained 3.2% (-16,700) below those recorded a year earlier. Statistics Canada noted that the annual decline was smaller than the 8.8% decrease reported in the previous quarter.