Canada private-sector job creation trails U.S. by wide margin: report

“Despite political rhetoric, Canada has performed poorly compared to America in creating private-sector jobs,” said Ben Eisen, senior fellow at the Fraser Institute and co-author of the report with senior economist Nathaniel Li.

Stronger employment growth among G7 countries

Ottawa’s 2024 Fall Economic Statement touted 7.4% employment growth since 2019, the strongest in the Group of Seven (G7). Adjusted for population growth, the Fraser authors found that per 1,000 working-age residents, total Canadian employment was essentially flat, while the U.S. added 7.6 jobs.

Excluding public-sector hiring widens the gap. Government jobs grew far faster than private-sector jobs in most provinces. Had Canada matched the U.S. pace, it would have had approximately 554,000 more private-sector jobs in 2024, the study estimated.

Small employers say the weakness persists. In October 2026, 22% of small firms planned to lay off staff and only 11% planned to hire – the weakest net staffing intentions since the pandemic, according to the Canadian Federation of Independent Business (CFIB). Average planned wage increases sat at 2.2%. Monthly data has been mixed, from Canada adding 75,000 jobs in July 2026 to economists’ view that Canada’s labour market is hanging in.