OTTAWA — Statistics Canada has reported a decline in job vacancies across Canada, reaching the lowest level since 2017. In August, the number of job openings fell by 2.4 percent from July, totaling 457,400 vacancies. This figure marks a significant drop of 15.2 percent compared to the same month last year, with 82,100 fewer available positions.

The job vacancy rate, which measures the number of vacant positions as a percentage of total labor demand, remained steady at 2.6 percent in August. This is a decrease from 3.0 percent in August 2024. The agency also noted that there were 3.5 unemployed individuals for every job vacancy, the highest ratio since November 2016, excluding the period from April to September 2020 when data was not available due to the pandemic.

The unemployment rate for August stood at 7.1 percent, an increase from 6.9 percent in July. This suggests a challenging job market for Canadians seeking employment, as the number of job vacancies continues to decline while the number of unemployed individuals rises.

A recent report from the Bank of Canada indicated that businesses are feeling less optimistic about the economy. Many companies expect a decrease in demand for their products and services, leading them to hold off on hiring new employees. The Bank of Canada attributed this cautious outlook to ongoing tariffs and trade conflicts, which are impacting sales growth.

In response to these economic conditions, the central bank has cut its benchmark interest rate for the second consecutive meeting. This move aims to provide businesses with more opportunities to borrow money for investment, potentially stimulating job growth in the future.

Statistics Canada also highlighted that certain sectors, such as transportation and warehousing, public administration, and information and cultural industries, had the highest number of job vacancies. Conversely, there were increases in available positions in agriculture, forestry, fishing, and hunting, while other sectors showed little change.

Additionally, payroll employment data for August revealed minimal changes, with an increase of just 3,300 employees receiving pay and benefits. This is a stark contrast to the 25,600 increase seen in July. Year-over-year, payroll employment rose by 0.2 percent, with notable increases in public administration and construction, while retail and wholesale trade experienced declines. Professional positions in scientific and technical services also saw a drop in payroll employment for the month.