Wage gains stay modest while education, construction, finance and retail reshape labour demand
Average weekly earnings in Canada rose 2 percent year over year to $1,320 in January 2026 while average weekly hours stayed essentially unchanged at 33.1, according to Statistics Canada.
Statistics Canada reports that payroll employment—the number of employees receiving pay and benefits from their employer in the Survey of Employment, Payrolls and Hours—rose by 45,600 in January after declining in December, and was up 0.2 percent year over year.
Most of the monthly gains came from educational services, construction, finance and insurance, and health care and social assistance, while retail trade recorded a decline.
In education, payroll employment increased by 20,000 (+1.4 percent) in January, partially offsetting earlier losses, but remained 0.4 percent lower than a year earlier, driven by declines at community colleges and CEGEPs and partially offset by gains in elementary and secondary schools and universities.
Construction continued to add jobs, with payroll employment up 0.7 percent in January and 2.0 percent year over year, led by non-residential building construction, building equipment contractors and other heavy and civil engineering construction, while residential building construction posted the smallest annual increase.
In finance and insurance, payroll employment climbed 0.8 percent in January after two months of declines and was 1.4 percent higher than a year earlier.
Statistics Canada attributed the increase mainly to gains in credit-related industries, partly offset by weaker securities and commodity brokerage employment.
Retail trade moved in the opposite direction, with payroll employment down in January and 1.5 percent lower year over year, led by clothing and clothing accessories retailers, grocery and convenience retailers and department stores, partly offset by gains at warehouse clubs, supercentres and other general merchandise retailers and health and personal care retailers.
On the demand side, there were 492,400 vacant positions in January, little changed from December and 6.7 percent lower than a year earlier, while the job vacancy rate held at 2.8 percent and edged down from 2.9 percent in January 2025.
The unemployment-to-job vacancy ratio stood at 3.0 in January 2026, down from 3.1 in December and below the August 2025 peak of 3.3, reflecting fewer unemployed persons alongside relatively stable vacancies.
Job vacancies were broadly steady across sectors in January.
Retail trade stood out, with vacancies rising 10.5 per cent, the first monthly increase since July 2025.
On a year-over-year basis, vacancies declined in health care and social assistance, accommodation and food services, and administrative and support, waste management and remediation services, while only finance and insurance reported higher vacancies.
Regionally, job vacancies were down year over year in Quebec, Ontario and British Columbia, and up only in New Brunswick, while Newfoundland and Labrador recorded the highest unemployment-to-vacancy ratio and Saskatchewan, Quebec and British Columbia the lowest, reported by Statistics Canada.
