Wildfires Disrupting Work in Key Regions
August saw widespread wildfire activity across Eastern Canada. In Newfoundland and Labrador, a provincewide fire ban began August 5, while Nova Scotia, New Brunswick, and Prince Edward Island also implemented restrictions into mid-September . These conditions impeded forestry activities, tourism, and seasonal work, particularly affecting local contract and gig workers.
Interprovincial Cooperation Gets a Boost
Prince Edward Island and Manitoba signed a Memorandum of Understanding to improve internal trade and streamline worker mobility across provinces. This could ease recruitment challenges by reducing red tape for staff relocating or commuting across provincial borders.
Tariff Reforms Aim to Support Lumber Sector, but Not All
On August 5, Prime Minister Carney unveiled $1.2 billion in support for Canada’s softwood lumber industry, including loan guarantees and market diversification funds. On August 22, the government also pledged to match U.S.’s removal of tariffs under CUSMA, effective September 1. However, tariffs on steel, aluminum, and autos will remain. These moves are likely to help workers in forestry and related trades, while job pressure may persist in metal-intensive sectors.
Industrial Moves, Mergers, and Layoffs: What to Watch
Several significant corporate developments shaped the job landscape:
A gold mine in Nova Scotia (Goldboro) received approval, promising 725 new jobs and a $2.1 billion GDP boost; construction to begin in 2026.
Air Canada resumed operations on August 19 after flight attendants returned to work under CUPE agreement, stabilizing employment in aviation.
In a blow to Ontario, Diageo announced closure of its Amherst berg bottling facility by 2026, raising concerns for local production staff.
Retail stalwart Claire’s filed for creditor protection, though stores remain open, injecting uncertainty for retail employees.
Global Trade and Markets: Ripple Effects at Home
International pressures continued to echo domestically:
Ottawa rolled back tariffs on many U.S. goods under CUSMA, but retained duties on steel, aluminum, and autos.
Meanwhile, China imposed a 75.8% anti-dumping duty on Canadian canola seed as of August 14, jeopardizing jobs in agri-export industries.
Globally, central banks including the Bank of England, Norges Bank, and the Australian central bank made interest rate adjustments; these shifts could influence Canadian borrowing costs and hiring sentiment.
Oil prices fell in August, WTI dropped to US $64.01/barrel, while Western Canadian Select ranged between US $49–54.
The Canadian dollar rose slightly, closing at 72.77 U.S. cents.
The TSX composite gained over 1,300 points, closing August at 28,564.45.
Labour Market: Cooling Temperatures with Structural Impacts
Data from the Labour Force Survey (August) underscores the weakening labour market:
Canada lost approximately 66,000 jobs and the unemployment rate rose to 7.1%, up from 6.9% in July.
Despite the monthly decline, employment remains up 1.0% year over year, adding roughly 212,300 jobs since August 2024.
Employment losses were broad-based:
Professional, scientific & technical services: −26,000
Transportation & warehousing: −23,000
Manufacturing: −19,000
Education services, natural resources, information, culture & recreation, and finance/real estate: all seeing declines.
Bright spots included:
Construction: +17,000
Accommodation & food services: +9,200
Agriculture: +4,800
Utilities: +4,700
Health & social assistance: +3,300 .
Provincial disparity:
Quebec appears resilient (employment steady),
Ontario, B.C., and Alberta saw job losses,
PEI gained jobs, while Newfoundland & Labrador, Manitoba, and New Brunswick saw declines.
Rising unemployment rates included:
Ontario: 7.7%
Alberta: 8.4%
Newfoundland & Labrador: 10.7%
Lower rates held in Quebec (6.0%), Manitoba (5.7%), Saskatchewan (4.7%), and B.C. (6.2%).
What It All Means for Staffing and Workforce Planning
Wildfire-induced bans disrupted seasonal and gig work, particularly across resource-rich regions, recruiters should watch for short-term shortages in forestry, tourism, and wildfire management sectors.
The interprovincial labour MOU signals smoother mobility for staffing across regions, useful for filling roles in high-demand areas or easing layoffs in others.
Support for softwood lumber firms may preserve jobs, while ongoing tariffs (steel, aluminum, autos) and China’s canola duty may continue straining employment in those industries.
The Goldboro mine approval (725 jobs) is a rare boost; construction and technical staffing may see increased demand early next year.
Corporate moves: Air Canada’s restart, Diageo’s facility closure, and Claire’s restructuring, indicate both job stabilization and risks within aviation, manufacturing, and retail.
On aggregate, the labour market’s cooling trend (marked job losses, rising unemployment, and regional disparities) signals caution ahead. Sectors like construction, health, hospitality, and agriculture show resilience, while professional and trade industries are more vulnerable.
Bottom Line
August 2025 brought a mix of natural disruptions, trade policy shifts, and unexpected corporate developments, all unfolding amid a marked softening in Canada’s labour market. For recruiters and staffing professionals, the message is clear: adaptability, regional insight, and proactive workforce strategy are more vital than ever.