Actalent Canada Labour Market Brief: A Look at Trends in Q3 2025

Actalent's quarterly Labour Market and Economy Report connects important dots between data and trends across Canada’s engineering and sciences hiring landscape. Readers can expect to learn about job growth, wage growth, inflation, unemployment rates, labour force participation rates and other key factors that impact the attraction, hiring and retention of workers.

Executive Summary

Canadian employment fell by 45,900 jobs in Q3 2025, a sharp reversal from the 99,300 jobs gained in Q2. The information, culture and recreation sector experienced the largest decline, shedding 40,200 jobs, while the accommodation and food services sector saw the strongest growth, adding 23,100 jobs during the quarter. The labour market continued to experience headwinds throughout the third quarter due to factors such as uncertainty regarding international trade policies. Employment in Canada fell by 40,800 jobs in July and 65,500 in August, before increasing by 60,400 in September.

The unemployment rate increased from an average of 6.9% in Q2 2025 to 7.0% in Q3 2025.

Among the industries Actalent supports, Q3 2025 unemployment rates were as follows: healthcare (1.7%), utilities (2.5%), professional, scientific and technical services (3.0%), manufacturing (3.7%), and construction (6.4%).

Year-over-year inflation remained close to the Bank of Canada’s (BoC) 2.0% target in July and August but picked up in September, reaching 2.4%. After holding its key interest rate steady in July, the Bank of Canada lowered the policy rate by 25 basis points at its September meeting. The decision was driven by signs of a weakening economy, softening labour market and reduced inflationary pressures. Despite the higher consumer price index in September, many economists still anticipate another interest rate cut at the next BoC meeting.

The year-over-year average hourly wage rate for all employees increased by 3.3% from Q3 2024 to Q3 2025, unchanged from the annual wage growth observed in Q2. In terms of “real” earnings (adjusted for inflation), wages continue to outpace inflation.