Which regions and sectors saw the biggest declines?
Canadian employers’ struggle to fill open job positions continued in the first quarter of 2025, according to the Canadian Federation of Independent Business (CFIB).
Overall, Canada had 393,400 job vacancies in the first three months of the year.
Private sector job vacancy rate held steady at 2.8 in Q1 2025.
Vacancy rates showed modest movement across provinces and territories.
On a yearly basis, Saskatchewan, New Brunswick, British Columbia, and Ontario saw the most notable declines. Prince Edward Island was the only province to experience a year-over-year increase in its vacancy rate, rising by 0.3 points.
Among sectors, personal services and construction sectors lead in vacancy rates, followed by construction and professional services.
“On a yearly basis, construction saw the most significant decrease (-1.4), followed by information, arts, and recreation (-1.2), the latter already having the lowest vacancy rate at 1.1%,” said CFIB.
Canada's job market showed little movement in February, with employment figures holding steady after three consecutive months of gains, according to a previous report.
Challenging business climate across Canada
The challenging business climate in the first quarter of 2025 for Canadian small- and medium-sized businesses may continue into the second quarter, signalling a weaker economy in the coming three months, according to a recent report.
Economic forecasts, based on the most recent monthly Business Barometer data, indicate that gross domestic product (GDP) growth slowed to 0.8% in Q1 2025, and that “an important contraction is to be expected in Q2.” reports the Canadian Federation of Independent Business (CFIB).
After consistent declines throughout 2024, CPI inflation rose to 2.4% in Q1 2025 and is expected to continue its climb to 2.7% in Q2, according to the report.
Amid ongoing uncertainty, investment plans have taken a hit, with private investment estimated at -13.9% in Q1 and forecasted to decline further to -19.1% in Q2.
This downturn follows an “exceptional” 10.7% surge in private investment at the end of 2024, according to CFIB.
“Small businesses are feeling the pinch. The raging trade war will likely drive up the costs of doing business and lead to inflation. While the Bank of Canada maintained its key interest rate, it will take bold policy changes for small businesses to feel meaningful relief. That would include reducing taxes and adopting full mutual recognition of each other's rules, permits and regulatory regimes,” says Simon Gaudreault, CFIB's chief economist and vice-president of research.
“Given how the long-term business confidence is at historically low levels, it's not surprising that small businesses are pausing their capital expenditures. It's nearly impossible for owners to plan expansions or investments when they're not sure if their business will even be open in six months. Governments at all levels urgently need to balance the economic environment, so SMEs have the capacity to withstand the impacts of the trade war.”
This decline comes from a historically low long-term business sentiment in the context of the raging trade war, says CFIB.
CFIB’s Business Barometer long-term index crashed to an all-time low in March, dropping 24.8 index points to 25.0.
