Labour Market Dynamics: Jobs, Unemployment, and Vacancy Pressures

Durham Region’s labour market continues to evolve as employers navigate worker shortages, job seekers face barriers to employment, and new economic forces reshape hiring patterns.

At the 2025 Durham Workforce Authority (DWA) Data Walk, two key research stations, Unemployment and Job Vacancies & Business Obstacles, explored how these challenges intersect. Together, they tell an important story about the state of work in Durham Region: where opportunities exist, who is being left out, and how employers are adapting to ongoing labour pressures.

Youth Unemployment: Higher Than the Average

Nationally, youth unemployment is often twice the adult rate. In August 2025, it reached 18.4%, underscoring the challenges young people face as they enter the workforce. For visible minority youth, the unemployment rate was even higher, reaching 33.9% in the 2021 Census.

Youth unemployment is driven by a combination of factors:

  • Automation: Entry-level jobs, such as cashier or frontline service roles, are increasingly being replaced by self-checkouts or digital systems.

  • Limited networks: Many young people lack professional connections that lead to early job opportunities.

  • Skills mismatch: Training doesn’t always align with employer needs, creating gaps even in times of high labour demand.

  • Economic conditions: Seasonal hiring patterns and declining job vacancies in youth-heavy sectors like retail and food service make it harder to find work.

Visible Minority Youth Face Additional Barriers

The DWA’s custom data shows that racialized youth experience disproportionately high unemployment rates.

  • Southeast Asian male unemployment reached 40%, while Black female unemployment was 26%, both significantly above the 18.2% rate for non-visible minority youth.

These disparities stem from systemic issues such as discrimination in hiring and a lack of access to mentors or career networks. For young people entering the workforce, this creates long-term effects, including labour-market scarring, lower earnings, increased risk of future unemployment, and lower job satisfaction.

Why It Matters

When youth face barriers to employment, the entire community feels the impact. Missed early career opportunities reduce lifetime income, weaken productivity, and limit the talent available to local employers. Addressing these barriers is essential to maintaining Durham’s economic growth and ensuring that no demographic is left behind.

What Employers Are Facing

While some job seekers struggle to find work, many employers continue to report difficulty filling positions. Data from Statistics Canada’s Job Vacancy and Wage Survey (JVWS) and the Survey of Business Obstacles reveal persistent hiring challenges in several sectors.

Job Vacancies

  • Ongoing, full-time vacancies are most common in Trades, Transport and Equipment Operation, followed by Sales and Service, Business and Administration, and Healthcare.

  • Vacancies have remained high year over year, from Q1 2024 to Q1 2025, suggesting long-term skill shortages rather than short-term fluctuations.

Business Obstacles

Employers report three major workforce-related obstacles:

  1. Retaining Skilled Employees – Particularly in Accommodation and Food Services, Administrative Support, and Retail Trade, where high turnover and lower wages make retention difficult.

  2. Recruiting Skilled Employees – A highly competitive labour market, skill gaps, and long hiring timelines make recruitment challenging in Healthcare, Finance, and Manufacturing.

  3. Labour Shortages – An aging population, skill mismatches, and uncompetitive working conditions contribute to shortages, especially in Construction, Health Care, and Administrative Services.

These issues lead to lower productivity, delayed projects, and higher operational costs for businesses across Durham Region.

Bridging the Gap

The DWA’s ongoing research helps identify strategies that connect job seekers with in-demand opportunities. Solutions discussed at the Data Walk include:

  • Expanding work-integrated learning programs to help youth gain experience before graduation.

  • Strengthening skills training to align education with employer needs.

  • Supporting inclusive hiring practices to reduce barriers for racialized and newcomer youth.

  • Promoting career awareness in trades and technical occupations, where vacancies remain high.

Through collaborative action between employers, educators, and policymakers, Durham can continue to reduce unemployment and strengthen its labour market resilience.

Learn More

Explore the latest Labour Market Insights Reports on the DWA website at durhamworkforceauthority.ca for detailed updates on job demand, job search activity, and employer hiring trends across Durham Region.