Canada’s Labour Market Outlook Projects Over 8 Million Job Openings by 2033

March 26, 2025

SPS Canada

Canada is facing a major labor market challenge, with approximately 8.1 million job openings anticipated by 2033. According to a recent report from Employment and Social Development Canada (ESDC), more than 100 occupations are at risk of shortages, especially in critical sectors like healthcare, construction, and technology. This rising demand poses both difficulties and opportunities for job seekers and employers.

What is the reason for the Labour shortage in Canada?

Several critical factors contribute to Canada’s labor shortages:

• Approximately 68% of job vacancies will arise from the need to replace retiring workers as a significant portion of the workforce reaches retirement age.

• Economic growth is expected to create about 2.6 million new jobs, further straining the labor market.

• Although 8.2 million individuals are projected to join the workforce, many may lack the necessary skills for in-demand industries.

What are the sectors facing the most shortages ?

The shortages will not impact all industries equally. Some sectors are at greater risk than others, particularly those that require specialized training and education.

Most Shortage in Labour : Healthcare Sector

With 38 occupations at risk, healthcare is the sector most impacted by labor shortages. The demand for medical professionals is growing, driven by Canada’s aging population. Key roles requiring skilled workers include:

• Registered Nurses (NOC 31301)

• Nurse Practitioners (NOC 31302)

• Medical Sonographers (NOC 32122)

Growing Demand in Construction and Skilled Trades

The construction industry is experiencing a labor crisis, with 25 occupations at risk of shortages. As demand for housing and infrastructure increases, skilled workers are essential to meet the need. High-demand positions include:

• Electricians (NOC 72200)

• Plumbers (NOC 72300)

• Welders (NOC 72106)

Education and Social Services: Increasing Workforce Demand

The education and social services sectors are also facing challenges in filling essential roles. The need for teachers and caregivers is steadily rising, with 11 occupations experiencing worker shortages. Key positions include:

• Secondary School Teachers (NOC 41220)

• Early Childhood Educators (NOC 42202)

Immigration as a Solution to Labor Shortages

With millions of job openings projected, immigration will continue to play a vital role in addressing Canada’s workforce challenges. Skilled newcomers are essential for filling labor gaps and driving economic growth.

To attract both local and international talent, employers are expected to implement new hiring strategies, such as offering competitive wages, training programs, and additional incentives.

The Canadian Occupational Projection System (COPS) provides a comprehensive list of at-risk occupations, offering valuable insights into labor market trends and opportunities.

As Canada’s labor market rapidly evolves, workers with the right skills will find numerous job prospects. Healthcare, construction, and technology are among the most affected industries, making upskilling and career shifts into high-demand fields advantageous. With 8.1 million job vacancies to fill, immigration and workforce development will be critical in maintaining economic stability. For those considering a move to Canada, now is the perfect time to explore career opportunities in these essential sectors.

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