Canada’s labour market is showing a noticeable slowdown in the rate at which workers change jobs, and economists warn that this trend could be constraining career mobility — especially for early-career workers and new entrants. After a surge in job switching during the post-pandemic period, the pace has eased significantly, and fewer Canadians are moving between roles than in years prior, creating what many analysts describe as a labour market bottleneck.

Recent data indicate that the monthly rate of job changes has dropped to roughly four per 1,000 workers, down from about seven per 1,000 in the years before the pandemic. This decline suggests that workers are staying in their current positions longer, even as vacancies diminish and demand for new talent softens. Economists attribute the slowdown to several factors, including a reduction in overall job vacancies, which limits opportunities to move, and broader economic caution following recent market disruptions.

When fewer workers switch roles, it can slow career progression and wage growth. Job mobility typically allows employees to gain new responsibilities, secure higher pay, and develop skills across different environments. It also opens up entry-level positions for younger job seekers as experienced workers move on, helping clear pathways up the career ladder. With fewer workers transitioning, these opportunities become more limited, which can create a “traffic jam” effect in the labour market and make it harder for newcomers and early-career professionals to find footholds.

Several structural challenges are influencing this trend. Housing affordability and high living costs in major cities mean that relocating for a new job is more difficult for many workers, reducing geographic flexibility. At the same time, some employers are offering less transparent job postings and fewer incentives to attract outside talent, which can dampen the incentive for workers to explore new roles.

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A slower job-switching environment also fits with broader labour data showing weaker vacancy levels and higher youth unemployment compared with earlier in the decade, even after seasonal employment programs. Young workers in particular are struggling to find meaningful entry points into the labour market, often requiring more experience than available roles provide.

Not all implications of reduced mobility are negative. For some workers, staying longer in a stable job can indicate improved job quality or satisfaction with current conditions. However, the broader risk is that a less dynamic labour market stifles wage growth and skill development across the workforce over the long run.

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In summary, economists caution that the current trend of fewer Canadians switching jobs could have knock-on effects for career mobility, wage progression, and entry-level opportunities if it persists into 2026 and beyond. Monitoring labour demand, vacancy trends, and regional differences will be key to understanding how this shift plays out in the broader economy.