Fewer Canadians Switching Jobs in 2025 Hurts Career Mobility, Economists Warn
A recent report highlights that fewer Canadians are switching jobs in 2025, and economists are raising concerns that this trend is constraining career mobility and long-term wage growth for the country’s workforce. With the pace of job changes falling relative to pre-pandemic norms, many workers—especially early-career professionals—are experiencing a “career bottleneck” where better opportunities are harder to find. Yahoo Finance
Here’s a detailed breakdown of the issue and what it could mean for Canada’s labour market and future economic prospects.
Job Switching Trends in Canada
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Recent data shows that job switching by Canadian workers has declined significantly, with only about four out of every 1,000 workers switching jobs each month in late 2025—down from roughly seven per 1,000 before the pandemic. This signals a notable slowdown. X (formerly Twitter)
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Economists explain that this reduced mobility is slowing the flow of talent through the labour market and limiting opportunities for advancement, particularly among younger professionals and those early in their careers. Reddit
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As a result, employment “career ladders” are not moving as quickly as they have in past economic cycles, potentially holding back wage growth and professional development. Yahoo Finance
Why Job Switching Is Slowing
Economists point to several structural factors contributing to fewer Canadians switching jobs:
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Lower Vacancy Rates: There are fewer open positions available across industries compared with earlier years, making it harder for job seekers to find alternatives. Reddit
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Housing Affordability Pressures: High housing costs can discourage relocation for better job opportunities or make workers more risk-averse about leaving their current positions. Reddit
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Cautious Workforce: Economic uncertainty has made many workers more hesitant about changing roles, particularly those with financial commitments or families to support. Reddit
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Shift in Hiring Practices: Corporate hiring patterns, including automation and tighter entry-level hiring, have reduced the number of straightforward opportunities for switching, especially for recent graduates. LinkedIn
These factors combine to create a labour market where mobility is reduced, and many workers feel “stuck” in their current roles, even when better opportunities might exist elsewhere.
Impact on Career Mobility and Wages
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With fewer job changes, workers may experience slower wage progression. Traditionally, switching roles has been a common path to higher pay and advancement.
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Reduced mobility also affects career development; without fresh opportunities, employees may find it harder to gain new skills or broaden their experience.
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For young Canadians, this slowdown is particularly impactful as they attempt to build careers in competitive sectors or pivot into emerging industries. X (formerly Twitter)
Policy experts often view job switching as a key driver of labour market dynamism because it reallocates talent to where it is most productive and encourages wage competition among employers.
Broader Labour Market Context
Despite the slower pace of job changes, Canada’s overall employment landscape has seen steady gains in some areas:
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According to Statistics Canada and government economic reports, the labour market has added more than 1.1 million jobs since pre-pandemic levels, indicating a resilient employment environment. budget.canada.ca
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However, while aggregate employment may grow, the quality and mobility of these jobs matter significantly for long-term economic growth and worker satisfaction.
What Workers Are Saying
Recent social and career surveys suggest that many Canadians still want to advance professionally—but are finding fewer pathways to do so:
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Anecdotal and survey evidence points to a strong desire among many Canadian workers to find more meaningful or better-paid roles, yet tight hiring in certain sectors is making transitions difficult. Facebook
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Workers increasingly cite the need for better benefits, higher pay, and clearer career pathways as motivations for seeking new roles, but opportunities to make these shifts are not as widely available as in prior years. Benefits Canada.com
Implications for the Canadian Economy
The slowdown in job switching has potential ramifications beyond individual careers:
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Productivity: Restricted mobility can slow overall productivity growth because talent is not optimally redistributed to high-growth areas or emerging sectors.
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Innovation and Skills Development: When workers remain in stagnant roles, the transfer of knowledge and fresh ideas across firms can slow, impacting innovation.
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Long-Term Labour Market Fluidity: Economists argue that a dynamic labour market depends on movement and competition; prolonged stagnation could have ripple effects on wage structures and employment patterns.
This trend also intersects with demographic changes such as Canada’s aging workforce, which is projected to impact labour supply and economic output over the coming decade. Wikipedia
What Can Improve Career Mobility?
Experts suggest several approaches that might support greater labour mobility and job switching:
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Stronger job creation in growth industries through targeted economic policies and investments.
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Training and upskilling programs to help workers transition between sectors with better prospects.
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Encouraging geographic mobility by addressing housing affordability and support structures in different regions.
Workers themselves may benefit from proactively expanding skills and exploring flexible or remote roles that broaden their job options. For a comprehensive overview of strategies workers can use to transition jobs, see this career mobility guide.