Behind the Numbers: Employment by Industry – February 2026

Behind the Numbers is a monthly series from the Durham Workforce Authority that breaks down the latest labour market data and what it means for Durham Region.  This blog is informed by the February 2026 Employment by Industry Report, which can be found here.

In February 2026, Durham Region’s labour market showed continued sector-level shifts, with growth in health care and several public-facing industries, alongside declines in retail and professional services. This snapshot highlights what’s changing, and what it means for employers, jobseekers, and workforce planning across the region.

Key Highlights

  • Employment: 254,100, down 1,700 month-over-month
  • Health Care & Social Assistance: 39,800, up 13,600 year-over-year
  • Wholesale & Retail Trade: 30,400, down 7,300 year-over-year
  • Manufacturing: 18,700, up 3,000 year-over-year
  • Professional Services: 21,600, down 6,600 year-over-year

What’s Happening in the Labour Market

Employment declined slightly in February, reflecting typical month-to-month variation following stronger gains in late 2025. While this decrease is notable, it does not indicate a broad-based decline in labour market conditions. Instead, the data points to a labour market that is adjusting, with gains in some sectors offsetting losses in others. This type of movement is common in a growing and evolving economy, particularly as industries respond to changes in demand, investment, and workforce availability.

Importantly, overall employment levels remain higher than they were one year ago, reinforcing the underlying strength of the labour market. This suggests that Durham’s labour market is not weakening, but rebalancing as sector demand shifts.

Sector-Level Trends Across Durham Region

A closer look at industry-level data reveals a labour market increasingly shaped by population growth, service demand, and infrastructure investment.

Sectors experiencing growth include:

  • Health Care & Social Assistance
  • Manufacturing
  • Transportation & Warehousing
  • Educational Services
  • Construction

The expansion of health care continues to be a defining feature of the local labour market, reflecting sustained demand for services in a growing region. Similarly, gains in construction and education suggest ongoing investment in both physical infrastructure and community services. Growth in manufacturing and transportation points to continued strength in goods movement and supply chain activity, reinforcing Durham Region’s role within the broader regional economy.

At the same time, some of Durham’s largest employment sectors are experiencing contraction.

Sectors experiencing decline include:

  • Wholesale & Retail Trade
  • Professional, Scientific & Technical Services
  • Accommodation & Food Services

Declines in retail may reflect evolving consumer behaviour and broader economic pressures, while decreases in professional services could indicate shifts in business investment, project cycles, or organizational restructuring. Accommodation and food services, which are closely tied to discretionary spending, continue to show variability.

These trends highlight a key structural shift: employment growth is increasingly concentrated in essential and infrastructure-related sectors, while consumer-driven and knowledge-based sectors face greater volatility.

Looking Beyond the Month-to-Month Changes

While monthly changes provide useful insight, longer-term trends offer a more complete picture of labour market conditions. Over the past year, employment has increased across the region, even as individual sectors have experienced periods of growth and decline. The trend data (page 2) shows relatively stable overall employment levels, with fluctuations occurring within industries rather than across the labour market as a whole.

This pattern reflects a labour market that is adapting to changing economic conditions, rather than experiencing widespread contraction. In this context, sector-level volatility is not a sign of instability, but an indicator of a labour market in transition.

What This Means for Employers and Jobseekers

For employers:
Employers in high-growth sectors, particularly health care, construction, and logistics, may continue to face recruitment pressures as demand for workers remains strong. Addressing these challenges may require a focus on workforce development, training pathways, and retention strategies. At the same time, employers in sectors experiencing decline may benefit from a larger pool of available workers, particularly those with transferable skills from retail and professional services.

For jobseekers:
Jobseekers may find the strongest opportunities in sectors experiencing sustained growth, particularly those tied to essential services and skilled trades. However, individuals seeking employment in sectors facing contraction may encounter increased competition and may need to consider reskilling or transitioning into in-demand fields.

The current labour market is defined less by a lack of jobs, and more by where those jobs are concentrated.

Looking Ahead

As Durham Region continues to grow, sector-level trends will remain a critical component of labour market analysis. Monitoring how employment shifts across industries, particularly in response to population growth and economic conditions, will be key to understanding where future opportunities and challenges may emerge. Aligning workforce strategies with these sector trends will be essential to ensuring that both employers and jobseekers can successfully navigate a changing labour market.

The Durham Workforce Authority will continue to track and share these insights to support informed decision-making across the region.