PUBLISHED March 27, 2026
Labour Market Growth Begins to Slow
According to the February 2026 economic update published by the United Steelworkers (USW), Canada’s labour market is showing signs of slowing growth after a stronger period in previous years. Labour force growth declined to 1.2%, a significant drop compared to 2.8% in 2024, indicating a clear reduction in workforce expansion.
Employment Growth Weakens Compared to Previous Year
Employment growth also slowed, falling to 1.1% from 1.86% in the previous year. This suggests that job creation is losing momentum, reflecting a broader cooling in labour market conditions.
Full-Time Jobs Expand More Slowly
A notable shift can be seen in full-time employment,
which increased by only 0.7%, significantly below the 1.75% growth recorded in 2024. In absolute terms, full-time employment rose by 127,000 jobs in 2025, compared to nearly 300,000 in the previous year.
Part-Time Employment Gains Strength
In contrast, part-time employment showed stronger growth, rising by 2.7%. This represents a slight increase compared to 2.4% in 2024 and indicates a shift in the structure of employment toward more flexible or less stable job types.
The divergence between full-time and part-time job growth suggests a structural change in the labour market. While employment continues to expand overall, the quality and stability of jobs may be evolving, with more workers entering part-time roles rather than full-time positions.
The divergence between full-time and part-time job growth suggests a structural change in the labour market. While employment continues to expand overall, the quality and stability of jobs may be evolving, with more workers entering part-time roles rather than full-time positions.
Despite these changes, the unionisation rate remained relatively stable at 30.6% in 2025, only slightly below 31% in 2024. This indicates that the overall structure of organised labour has not changed significantly, even as employment patterns shift.
The slowdown in labour force growth is partly linked to changes in immigration policy, which have reduced the inflow of workers. This development has contributed to the overall moderation in labour market expansion.
Outlook: Slower but Still Overall, the data points to a Canadian labour market that continues to grow, but at a slower pace and with changing dynamics. While employment is still increasing, the shift toward part-time work and reduced labour force growth suggest a more cautious and evolving economic environment.
Despite these changes, the unionisation rate remained relatively stable at 30.6% in 2025, only slightly below 31% in 2024. This indicates that the overall structure of organised labour has not changed significantly, even as employment patterns shift.
The slowdown in labour force growth is partly linked to changes in immigration policy, which have reduced the inflow of workers. This development has contributed to the overall moderation in labour market expansion.
Overall, the data points to a Canadian labour market that continues to grow, but at a slower pace and with changing dynamics. While employment is still increasing, the shift toward part-time work and reduced labour force growth suggest a more cautious and evolving economic environment.
