Canada’s labour market is stabilizing, but it’s also becoming more selective. Our annual Jobs Outlook breaks down the sectors, regions and skills offering the strongest opportunities for newcomers in 2026 — and what it takes to break in.
As Canada enters 2026, the labour market is settling into a more cautious rhythm. Hiring has not stalled, but employers are being far more selective about where and how they add staff. For newcomers, the question is no longer simply whether jobs exist — it is which sectors, skills and regions offer the best chances to break in.
Recent data from Statistics Canada show signs of stabilization after a turbulent 2025. The national unemployment rate fell to 6.5 per cent in November, down from a peak of 7.1 per cent in September, as employment rose by 54,000 jobs. The employment rate edged up to 60.9 per cent, with most of the gains coming from the private sector. However, growth has been driven largely by part-time work, highlighting the uneven nature of the recovery.
At the same time, slower population growth and immigration levels returning to more sustainable targets have eased pressure on the labour market — but also made competition tougher for youth and newcomers trying to land their first Canadian role.
Where the growth is
Health care remains Canada’s strongest and most resilient employment sector. “Roughly 72 per cent of health-related occupations currently show a positive outlook, driven by Canada’s aging population and ongoing staffing shortages,” says talent-acquisition expert Sajithkumar Swaminathan. “This demand extends beyond frontline roles to include positions shaped by the growing use of technology across health systems.”
Statistics Canada data reinforce that trend. Health care and social assistance added 79,000 jobs over the past year, making it one of the country’s fastest-growing sectors.
Skilled trades are also gaining momentum as housing construction, infrastructure projects and retirements continue to drive demand. Professional and technical services remain on an upward trajectory, while manufacturing has held steady despite global trade pressures.
Not all sectors are keeping pace. Wholesale and retail trade shed 34,000 jobs in November, particularly in Ontario and Quebec. Consumer-facing tech roles such as web development and gaming have also softened as automation and artificial intelligence take over routine tasks.
“Hiring has cooled in some digital roles, but demand remains strong for information systems specialists, engineering managers and civil engineers,” Swaminathan says. “Employers are especially looking for people who combine technical expertise with leadership and communication skills.”
Sajithkumar Swaminathan
Regional opportunities
Job growth continues to vary widely across the country. Alberta recorded the strongest gains in late 2025, followed by New Brunswick and Manitoba. Ontario remains Canada’s largest employment hub, particularly along the Toronto–Hamilton–Waterloo corridor, where demand remains strong in health care, education and professional services.
Ottawa is expected to rebound in 2026 as federal technology modernization projects restart. In British Columbia and Alberta, demand remains high for health-care technology and broader tech services. Atlantic Canada continues to face labour shortages in health care, hospitality and infrastructure.
What this means for newcomers
For newcomers, 2026 is a year that rewards focus and flexibility. Long-term growth is concentrated in health care, skilled trades and specialized technology — not in broad, generic roles.
“Competition remains intense in areas such as project management, business analysis and quality assurance, especially in major cities,” Swaminathan says. He also notes a growing gap in leadership roles, suggesting newcomers with management experience may find stronger opportunities by pursuing regulated or supervisory pathways over time.
Geography matters, too. Regions with acute labour shortages often provide faster entry points than Canada’s largest cities.
In a more selective market, newcomers who invest in credentials, communication skills and targeted job searches will be best positioned to succeed.
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