Employment on the rise in Quebec City in January
Here is the translation of this article. As usual, Quebec City operates within its own business environment, which makes it much more resilient to economic fluctuations.
https://www.carrefourdequebec.com/20...is-de-janvier/
Employment in the Quebec City CMA recorded another increase at the start of 2026, while the unemployment rate fell to 3%.
Xavier Renald
Québec International warns the public that this tightening of the labor market could have adverse effects.
Below full employment
Data from Statistics Canada's January Labour Force Survey show that the labor market is tightening in the Québec City CMA. The employment rate reached its highest level since 2019 at 68.1%, with 515,500 jobs filled in the region, a 1.2% jump from the previous month.
However, it is the unemployment rate that is attracting attention at the start of 2026. Down 0.3 percentage points from December 2025, the rate is below the full employment threshold for the second consecutive month.
“In this context of tightening, it is important to remember that excessively low unemployment carries its own risks,” according to the economic publication Québec International. The organization, which works to promote economic development in the region, warns that once labor becomes scarce, companies may be tempted to delay recruitment and investment decisions.
Furthermore, a sharp rise in employment can fuel inflationary pressures by pushing wages up. These wage increases can then lead to price increases. “This increased tension could lead to labor shortages, slow down the completion of projects, and increase production costs,” warns Rosalie Forgues, an economist for Québec International.
While Quebec has not yet crossed a critical threshold, stabilization or a rise in unemployment would be desirable in order to avoid economic overheating and preserve the growth capacity of businesses.
A first in five years for 15-24 year olds
Even young people found themselves below the full employment threshold in January, according to non-seasonally adjusted data from the Labour Force Survey. For the first time in five years, the unemployment rate for 15- to 24-year-olds fell below this threshold, to 3.2%, down 6.5 percentage points over one year. The coming months will show whether this low rate will continue or whether it is a temporary increase linked to jobs.
The youth unemployment rate was a cause for concern in 2025, exceeding 10% during the summer. However, at the start of this year, “the issue is not whether young people are working in the Quebec City region, but rather analyzing how they are integrating into a more competitive market,” says Ms. Forgues.
This dynamic can be used to assess the economy's absorption capacity, particularly with regard to replacing departures. In this regard, the 2026 Economic Outlook survey shows that 54% of business managers anticipate an increase in staffing levels in 2026, compared to 62% last year. In addition, 73% of survey respondents are experiencing recruitment difficulties.
As a result, companies are now focused on improving productivity and strengthening skills, while young people must integrate into a competitive labor market marked by the gradual integration of artificial intelligence.
Support for foreign workers
This drop in the unemployment rate comes at a time when the abolition of the Quebec Experience Program (PEQ) last November could lead to the departure of many foreign workers already established in the province.
Many political and economic actors are speaking out to express their opposition to this measure. Among them, Quebec City Mayor Bruno Marchand has made numerous media appearances in recent days.
“We need them for our entrepreneurs who need workers,” said the mayor of Quebec City in a video posted on his Facebook account last week as part of the Blue Hearts initiative.
The Union of Quebec Municipalities (UMQ) launched the Blue Hearts movement to support immigrants threatened by the end of the PEQ. The UMQ is calling for the implementation of a grandfather clause for those penalized by the abolition of the program, as well as transitional measures for temporary foreign workers already in the workforce.
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