Spring 2026 Canadian Labour Market Trends: what’s hot what’s not
Overall things in Canadian jobs and employment are plodding along more or less at the same level of stress and efficiency as they have been for the last couple of years.
The worst news is large scale layoffs in the federal government which plans to eventually lay off 10% of its workforce over the next four years, mostly through attrition (based on 2023/24 peak). Provincial governments in Ontario and BC have hiring freezes. There’s no specific trend in municipal governments, many of which are still hiring.
There are ongoing layoffs in big tech, significant ones at Amazon and Meta. But there remains a persistent and ongoing need for tech workers especially in government, education, healthcare and banks. This is where most tech jobs have always been.
Some highlights:
Wages are up, but so is inflation. Wages were catching up until gas prices skyrocketed.
The unemployment rate is inching in the wrong direction and doing it steadily. It’s currently at 6.9% (StatsCan) In 2022 it was at a low of 5.28% and we had labour shortages and people felt confident.
Additionally, there is an increase in part-time, contract and temporary work. This increase in less stable jobs has been on a significant rise since 2000.
Unemployment is a little higher in urban areas than rural areas.
With the launch of Claude by Anthropic in February this year, AI has improved dramatically. But even this week the Economist is still reporting that changes are happening incrementally rather than cataclysmically.
Most people are still using ChatGPT. I’m working on a video for the average among us on how to improve your basic AI skills.
The Bank of Canada Business Growth Survey, reported moderate growth in the Canadian business sector but the results of the war in the Middle East, and the resulting rise in the price of oil, have not yet reached the statistics. The price of oil is up which negatively impacts costs in supply chains and product manufacturing, but it also enhances stock portfolios that have not divested.
Jobs in Demand 2026:
Overall healthcare, skilled trades and tech are always looking for more people. Yup, even tech, but not big tech. Healthcare, government, education and banking are all heavy tech users, and they are in need of people with the right skills. These employers tend to provide long-term stable jobs with labour protections and good benefits. The salaries are almost certainly not as high as in big tech, but the risk is much lower, and the work–life balance is probably better.
Healthcare: Overall, the healthcare sector is still hiring. It continues to face huge labour shortages with no end in sight. This is a point of considerable stress for patients and people already working in the sector, but it does mean good opportunities for those looking for work. Healthcare jobs often pay well although the primary motivator for so many is the profound drive to help people. And while there are many rewards when you work in this sector, working conditions, made worse by labour shortages, can be challenging. On a positive note, there are endless ways to work in healthcare, ranging from a regular Monday-to-Friday workweek to shift work, part-time, overtime, and everything in between. If the job you have isn’t working, mobility (the ability to switch jobs) in the healthcare sector is good.
Skilled trades: There is a persistent shortage of skilled trade jobs even as the housing market slows. Demand is not always evenly distributed geographically so sometimes those early in their careers need to move or wait until the right thing opens up. For a while now there has been a shortage of training spots for new trades people, with a significant shortage of skilled teachers and specialized classroom space. But as of this month, the federal government has pledged a $6 billion, five-year "Team Canada Strong" plan to recruit, hire, and train over 100,000 new Red Seal trades workers. This includes weekly financial support for apprentices and a $5000 completion bonus. Trades jobs are often great jobs and in Canada it is about to become easier to train for one.
Technology: If you’re interested in a job in the tech sector, there are still many opportunities with the overwhelming majority of tech managers reporting that they have difficulty hiring the talent they need. The areas with the greatest current demand:
Cybersecurity and fintech
Data science and management
AI: implementation, scalability, ethics, oversight and management
AI and machine learning specialists top the list of fast-growing jobs, but this is no longer so much in development and experimentation but more in implementation, scalability, ethics, oversight and management. As noted earlier, the greatest growths in tech jobs continue to be in AI, fintech, cybersecurity and big data. Telehealth, online education platforms, business intelligence, e-commerce sustainability technology, and transit production are also growth areas.
FYI: In 2025, more than 80% of executives reported that they do not have the technology talent they need to drive their digital transformation and that a lack of appropriate talent is holding back that transformation.
Alternative energy: Alternative energy deserves its own little section because, along with sustainability specialists, it continues to be a growth area and it’s been given a very solid boost with the significant rise in oil prices.
Try this: If you’re thinking of a career that involves tech, build up your tech skills but work on the soft stuff also — employers are looking for workers who think creatively, are problem-solvers, and are good with people and teams.
Try this: Identify the skills gaps in your industry. Check online sources, check industry chat groups, and people you know. Then think about how you might address those same gaps in yourself. In general, employers are looking for people with good tech skills and soft skills. I’ll address this more in an upcoming post.
Try this: Module One of the Career Development Workshop helps you do your own research about where in the labour market is the best fit for you. Check it out, it’s free.