In December 2022, the Canadian job market sees third straight month of vacancy decline as hiring remains strong. Despite the fact that 91,400 positions were filled in December 2022, there were 848,000 job openings, according to reports. Additionally, payroll employment, which includes employees whose employers pay them or provide them benefits, increased significantly.
While the Canadian labor market has made progress toward higher payroll employment and fewer job vacancies, several industries continue to face persistent labor shortages and high vacancies. Consequently, the total number of job vacancies remained relatively unchanged from November to December 2022 (849,200). Consequently, many key positions remain unfilled, causing labor shortages to become a major issue.
Despite increased employment, which sectors still had vacancies?
It should be noted that a job is classified as “vacant” if:
- There is a defined job opening.
- Work can commence within 30 days,
- The employer is actively seeking external candidates to fill the role.
The top five sectors in Canada were responsible for 55% of all job vacancies. These sectors include:
- 149,800 jobs were available in the healthcare and social assistance sector
- A total of 108,000 jobs were available in the accommodation and food services industry
- The retail trade sector had 100,200 job openings
- The construction sector had 77,400 job vacancies
- The manufacturing sector had 71,700 job vacancies
- The professional scientific and technical services sector had 58,100 job vacancies
Canadian job market sees third straight month of vacancy decline in social assistance and healthcare
Social workers and healthcare professionals remain one of Canada’s biggest challenges. As vacancy rates rose by another 18,200 positions in December after four straight months of employment growth for this industry, issues resurfaced. It is estimated that this increase in open positions has almost entirely offset the 19,400 new employees hired in November.
149,800 jobs were available in the sector in December 2022, more than any other industry in the country. As a result, despite a net rise of 190,600 jobs over the past two years, there has been little change in overall vacancies in the healthcare and social assistance sector.
Construction
Much like its US counterpart, the Canadian construction industry has witnessed consistent payroll expansion over the past four months. However, the industry’s persistently high unemployment rate continues to impact the economy. Reports suggest that over 79,000 positions remain unfilled in this sector, up from 61,800 in December 2021. This indicates a growing demand for labor in construction, coupled with a shortage of skilled workers.
Which industries witnessed the highest levels of hiring in December?
In December 2022, hiring surged in the following industries across Canada:
- A rise of 26,500 jobs was recorded in the healthcare and social assistance sector.
- The finance and insurance industry saw an increase of 13,800 jobs.
- The construction industry witnessed a rise of 11,500 jobs.
It is worth highlighting those two of the three industries that witnessed significant payroll employment growth in December, namely healthcare and construction, which are also among the top sectors with the most job vacancies in Canada. This indicates that the Canadian economy is on the path to recovery, albeit being hindered by the persistent labor shortage, which is expected to lead to an increase in immigration in the coming years.
Moreover, each of these sectors reported significant payroll gains that contributed to the overall employment gains in their respective industries. As a result, the industries that are fueling employment growth in Canada are also the ones with the most significant job vacancies, showing a shortage of skilled workers to meet the looming labor shortage.
The upcoming months are expected to bring significant growth to these industries. However, non-residential construction investment has steadily increased over the past year by approximately $600 million CAD, despite a decline in investment in residential buildings in recent months (following a peak in July-August 2022). This indicates a positive trend for the sector as it suggests that the Canadian economy is growing.
Canadian government policies favor immigration to address the labor shortage in healthcare and social assistance, another sector in which it has heavily invested. As part of the effort to alleviate the shortage, Immigration Refugees and Citizenship Canada (IRCC) removed barriers to physician Express Entry applications, increased opportunities for foreign-trained medical professionals to become accredited and work in Canada, and reduced the work experience requirement for caregivers by 50% in order to qualify for permanent residence. To alleviate the severe labor shortage in this industry, the Canadian government has taken several actions.
Which Canadian provinces experienced the highest increase in hiring?
Payroll employment increased the most in December in the following provinces:
- Quebec saw an increase of 8,800 jobs in payroll employment in December.
- In Ontario, payroll employment increased by 5,600 jobs in December.
- British Columbia saw an increase of 4,600 jobs in payroll employment in December.
- Alberta experienced a rise of 3,800 jobs in payroll employment in December.
The number of payroll employees in Newfoundland and Labrador fell by 100 due to the loss of 100 jobs. Comparatively, there were more than 33 percent fewer open positions in November.
Although the recent increases in employment are encouraging, they pale in comparison to the number of job openings that Canada will need to fill in the coming months to assure its continued economic prosperity.



