April 25, 2025 from Canadian HR Reporter
In the first quarter of 2025, Canadian employers continued to face difficulty filling open roles, with a total of 393,400 job vacancies reported, according to the Canadian Federation of Independent Business (CFIB). The private sector job vacancy rate remained unchanged at 2.8%.
Despite the steady overall vacancy rate, certain regions and sectors showed noticeable shifts. On a year-over-year basis, Saskatchewan, New Brunswick, British Columbia, and Ontario experienced the largest declines. In contrast, Prince Edward Island saw its vacancy rate increase by 0.3 percentage points.
Personal services and construction led all sectors in vacancy rates, followed by professional services. However, construction also recorded the sharpest year-over-year decrease (-1.4 percentage points), with information, arts, and recreation following at -1.2 percentage points.
Confidence and Investment Decline as Businesses Brace for Q2
The CFIB’s Business Barometer data paints a bleak picture of what lies ahead. Following steady CPI inflation growth—rising from 2.4% in Q1 and projected to reach 2.7% in Q2—economic activity is expected to weaken. GDP growth dropped to just 0.8% in Q1, with further contraction anticipated in the second quarter.
Private investment also took a hit, falling by 13.9% in Q1 and forecasted to slide further to -19.1% in Q2. This follows an unusually strong performance in Q4 2024, when investment surged by 10.7%.
“Small businesses are feeling the pinch,”
said Simon Gaudreault, CFIB’s chief economist.
“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.”
Policy suggestions include reducing taxes and implementing full mutual recognition of rules and regulatory regimes across provinces. The urgency is compounded by the fact that the CFIB’s long-term business confidence index dropped to an all-time low of 25.0 in March, down 24.8 points.
With capital spending paused and long-term planning on hold, small and medium-sized enterprises (SMEs) are left navigating a fragile and uncertain economic landscape.
Considering an IME or document review to resolve an insurance claim, legal file, or workplace health and safety issue?
Our specialists provide evidence-based opinions, so get in touch with Western Medical today to learn more about our services.