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Canada’s Unemployment In Numbers

Everyday we come across skilled jobseekers struggling to find work — and many have been out of work for months. But what is this unemployment in numbers? Today, let's dig in the real data from the national statistical office Statistics Canada

Behind Canada’s steady national unemployment rate lies a deeper story: a rising share of long-term unemployed, and persistent racial and youth employment gaps. This isn’t just an economic slowdown — it’s a signal of structural cracks in the labour market.

1. The Big Picture: Unemployment Is Rising Again

  • As of March 2025, about 1.5 million Canadians were unemployed, a 12.4 % increase (+167,000) from the previous year. [1]

  • Among them, 23.7 % had been out of work for 27 weeks or longer, up from 18.3 % a year earlier. [1]

  • Even more concerning — 41.5 % of unemployed Canadians had not worked in the previous 12 months, compared to 35.4 % a year before. [1]

These figures show a clear rise in long-term unemployment, signalling that many are struggling to re-enter the workforce after job loss.

2. Canada’s Long-Term Unemployment by the Numbers

Indicator (Mar 2025) Value YoY Change Source Total unemployed 1.5 million +12.4 % [1] Long-term unemployed (27+ weeks) 23.7 % of total +5.4 p.p. [1]

Not worked in 12+ months 41.5 % of total unemployed +6.1 p.p. [1]

3. Racial and Regional Disparities

Unemployment doesn’t affect everyone equally. Racialized and immigrant Canadians continue to face higher unemployment rates than the national average.

  • Racialized workers: ~ 9.9 % unemployment vs non-racialized ~ 7.3 %. [2]

  • Immigrants: ~ 7.7 % vs Canadian-born ~ 6.4 %. [2]

  • Black population: make up 5.4 % of Canada’s labour force (~ 1.2 million people) but face lower employment rates (77.2 %) than the national average (82.8 %). [3]

  • Their unemployment rate remains higher than both the total racialized and overall populations. [3]

These trends reveal enduring inequities in job access, career progression, and economic security.

4. Youth Unemployment: The New Flashpoint

Youth unemployment is particularly alarming — especially among racialized youth [4]

These figures highlight systemic challenges faced by racialized youth, including credential barriers, lack of professional networks, and limited access to early career opportunities.

5. What’s Driving the Trend?

Canada’s growing long-term unemployment problem is being influenced by several factors:

  • Offshoring and automation are shifting mid-skill jobs overseas or replacing them with technology.

  • Slow rehiring post-pandemic in service and public sectors, particularly for part-time and contract roles.

  • Geographic mismatch — many jobs are being created in urban tech hubs, while layoffs are concentrated in smaller cities or industrial areas.

  • Systemic inequities that leave racialized and immigrant workers vulnerable to longer jobless periods.

6. Why It Matters

Long-term unemployment leads to skill erosion, financial stress, and social exclusion. For younger and marginalized groups, it means delayed economic independence, lower lifetime earnings, and weaker economic mobility.These aren’t temporary setbacks — they’re warning signs that Canada’s labour market recovery is leaving too many behind.

7. What Canada Needs to Do

For Employers

  • Hire from pools of long-term unemployed — many bring valuable experience.

  • Create re-entry programs for those out of work > 6 months.

  • Address systemic bias in recruitment.

For Policymakers

  • Expand targeted training for long-term unemployed and under-represented groups.

  • Strengthen labour mobility and credential recognition for immigrants.

  • Provide incentives for companies that reintegrate displaced workers.

For Jobseekers

  • Invest in new digital and AI-related skills.

  • Engage in short-term upskilling programs offered by provinces and colleges.

  • Leverage networks and community job-placement resources.

Canada’s unemployment story isn’t about how many jobs exist — it’s about who gets them and who stays left out.

As long-term unemployment grows and marginalized groups remain disproportionately affected, Canada’s challenge isn’t just economic — it’s deeply social.

Day 10 of my 30 days series is a reminder that inclusion and opportunity must be core to our recovery, not afterthoughts.

References

[1] Statistics Canada – Labour Force Survey, March 2025 https://www150.statcan.gc.ca/n1/daily-quotidien/250404/dq250404a-eng.pdf

[2] Statistics Canada – Labour Market Outcomes for Racialized and Non-Racialized Populations, 2025 https://www150.statcan.gc.ca/n1/pub/71-607-x/71-607-x2024001-eng.html

[3] Statistics Canada – Labour Market Outcomes for the Black Population in Canada, September 2025 https://www150.statcan.gc.ca/n1/daily-quotidien/250922/dq250922c-eng.html

[4] Statistics Canada – Youth Labour Force Characteristics by Population Group, July 2025 https://www150.statcan.gc.ca/n1/daily-quotidien/250808/dq250808a-eng.html 


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