Where talent gaps are widening: Industries with sharpest imbalances between job demand and supply

Retail, other services, and professional services are struggling to find workers — new talent supply and demand dashboard shows where gaps are widening fastest

Where talent gaps are widening: Industries with sharpest imbalances between job demand and supply

Canada’s labour market may be slowing at the national level, but industry-level trends are unique. New data from HR Reporter’s Canada’s Talent Supply and Demand Per Industry (2015–2025) dashboard shows widening divergence between payroll employment, job vacancies, and vacancy rates across major sectors.

Industries with the largest labour shortfalls: The most recent data from 2025 shows that several industries remain chronically understaffed, with vacancy rates that signal persistent talent shortages despite slowing national employment growth. As of July 2025, three sectors stand out:

Retail trade — still one of Canada’s hardest-to-staff sectors:

  • Payroll employees: 1,994,165
  • Job vacancies: 44,315
  • Vacancy rate: 2.2%

Although vacancy rates in retail have moderated slightly since the 2021–2023 peak, with nearly 2 million workers and the country’s largest concentration of customer-facing roles, even a 2% vacancy rate translates into tens of thousands of unfilled positions at any given time.

Other services (except public administration):

  • Payroll employees: 580,700
  • Job vacancies: 24,690
  • Vacancy rate: 4.1%

This sector continues to exhibit some of the highest vacancy pressure outside agriculture and accommodation/food services. Part-time-heavy employment structures keep vacancy rates elevated even in periods of slower national job growth.

Professional, scientific and technical services — talent demand outpacing supply:

  • Payroll employees: 1,238,590
  • Job vacancies: 36,770
  • Vacancy rate: 2.9%

Despite being a high-wage, high-attraction sector, professional services are seeing persistent vacancy pressure. HR teams recruiting in this sector face ongoing competition for specialized talent.

A decade of consistent shortages: 2025 vs. 2015

These 2025 patterns mirror structural imbalances evident ten years earlier. Among the earliest data points (April 2015), several industries were already showing signs of chronic labour strain:

Agriculture, forestry, fishing and hunting (April 2015):

  • Payroll employees: 170,000
  • Job vacancies: 18,300
  • Vacancy rate: 9.7%

Still the highest monthly vacancy rate in the entire dataset, agriculture has seen severe labour scarcity this decade, which automation, immigration, and seasonal work programs have not yet resolved.

Administrative and support, waste management and remediation services (April 2015):

  • Payroll employees: 751,950
  • Job vacancies: 42,165
  • Vacancy rate: 5.3%

 A sector defined by high turnover and difficult-to-fill roles, this industry continues to experience structural hiring challenges through 2025.

Why this matters for HR

For HR leaders, the implications are immediate and actionable:

  • Industries with rising job vacancies often face skill shortages two to four quarters later.
  • Employment growth without equivalent workforce availability signals mounting recruitment challenges.
  • Sector-level vacancy patterns should guide workforce planning, mobility strategy, and compensation design.

The Canada’s Talent Supply and Demand Per Industry (2015–2025) dashboard gives HR teams the most comprehensive view of these pressures, allowing them to:

  • anticipate hiring bottlenecks before they occur
  • benchmark industry conditions with real-time precision
  • build recruitment plans aligned with talent availability
  • identify where labour supply is structurally insufficient

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