Key Takeaways
- Canadian workers are quitting jobs less often than before the pandemic, with a notable drop in “quick quitting” (leaving within the first 12 months).
- The decline is evident across most age groups and industries, and is especially pronounced among new hires.
- Data from Indeed Canada and Statistics Canada show a 41 % reduction in monthly employer‑to‑employer switches compared with 2017‑2019 averages.
- The trend coincides with a “low‑hire, low‑fire” labour market described by the Bank of Canada, where job finding has become harder.
- Industries that previously had high turnover—manufacturing, accommodation & food services, and information, culture & recreation—experienced the largest reductions in quick quitting.
- Improved job‑search information and higher job‑search satisfaction may be encouraging workers to stay longer in roles they find preferable.
- For employers, lower quick‑quitting reduces recruiting and onboarding costs; for workers, the implications are mixed, reflecting both greater stability and potentially limited mobility.
Overview of the Trend
The Indeed Canada report highlights a clear shift in Canadian labour‑market behaviour: workers are leaving their jobs less frequently than they did in the pre‑pandemic years. Specifically, the proportion of employees who quit within their first year of employment—termed “quick quitting”—has fallen markedly. This decline is not confined to a single demographic or sector; it spans most age groups and industries, signalling a broader change in how Canadians approach job tenure. The trend suggests growing caution among workers about the ease of finding new employment, reflecting a more pessimistic outlook on job prospects in a slowing economy.
Data Sources and Methodology
Indeed Canada’s analysis draws on Statistics Canada’s labour‑force surveys, focusing on separations that result in non‑employment (i.e., workers who leave the labour force altogether or become unemployed) rather than internal job‑to‑job moves. To capture the full picture, the report also examined employer‑to‑employer transitions, noting a 41 % drop in the monthly share of employees changing employers between April 2025‑April 2026 compared with the 2017‑2019 average. By isolating “quick quitting” (tenure ≤ 12 months) and comparing it against longer‑tenured workers, the study highlights where the biggest shifts are occurring.
Pandemic Context and Labor Market Cooling
Brendon Bernard, senior economist at Indeed Canada, attributes the downturn in quitting to a cyclical cooling of the labour market that began in earnest in 2023. The Bank of Canada has characterized the post‑2022 environment as a “low‑hire, low‑fire” regime: hiring has slowed, and layoffs have remained relatively low, but unemployed workers face greater difficulty securing new positions. Canada’s unemployment rate rose from 5 % at the end of 2022 to a peak of 7.1 % last fall and has since hovered between 6.5 % and 7 %, underscoring the sluggishness that dissuades workers from risking a job change.
Age Group Differences
When broken down by age, the decline in quick quitting is most dramatic among younger workers. For those aged 15‑24 with a year or less on the job, the quick‑quitting rate fell 37 % relative to the 2017‑2019 baseline. Their longer‑tenured peers (still 15‑24 but employed > 1 year) saw a 19 % reduction. Workers aged 25 and older, including those over 55, also experienced lower quick‑quitting rates, though the drop was less pronounced. This pattern suggests that early‑career employees, who historically exhibited higher turnover, are now exhibiting greater job stability, possibly due to fewer attractive alternatives.
Industry Specific Findings
The report notes that industries previously known for high turnover have seen the largest reductions in quick quitting. Manufacturing, accommodation and food services, and information, culture and recreation all showed significant declines over the two‑year period ending April 2026. In these sectors, the pre‑pandemic norm of frequent short‑term exits has given way to longer initial tenures. Bernard speculates that the shift may reflect both a tighter hiring climate and workers’ growing reluctance to leave roles where they have already invested time in learning firm‑specific skills.
Role of Job Satisfaction and Information
A possible explanation for the trend lies in improved job‑search information and heightened job satisfaction. Bernard observes that today’s job seekers may have access to richer data about wages, working conditions, and career progression than in the past, enabling them to match more closely with roles that suit their preferences. When workers feel they have found a good fit, the incentive to quit quickly diminishes. This hypothesis aligns with the observation that the decline is strongest among new hires, who are in the position to evaluate early‑job experiences and decide whether to stay.
Employer Perspectives
From an employer’s standpoint, the reduction in quick quitting is largely positive. Fewer departures within the first year mean lower expenditures on recruiting, advertising, interviewing, and onboarding replacements. It also reduces the disruption caused by constant turnover, potentially boosting productivity and team cohesion. However, Bernard cautions that while employers benefit from cost savings, they must remain vigilant about employee engagement; a lack of voluntary exits could mask underlying dissatisfaction if workers feel trapped by limited external options.
Worker Implications and Policy Considerations
For workers, the implications are ambivalent. On one hand, greater job stability can lead to steadier income, better benefits accrual, and opportunities for skill development within a single firm. On the other hand, reduced mobility may hinder wage growth if employees are less able to pursue higher‑paying positions elsewhere, especially in a labour market where hiring is sluggish. Policymakers might consider measures that enhance labour‑market dynamism—such as targeted retraining programs, wage subsidies for new hires, or incentives for geographic mobility—to ensure that the current stability does not evolve into persistent mismatch or underutilization of talent.
Conclusion
The Indeed Canada report paints a picture of a Canadian labour market that has become less fluid since the pandemic’s peak. Declines in quick quitting, driven by a combination of economic caution, improved job‑search information, and sector‑specific shifts, point to a workforce that is more reluctant to leave jobs early. While employers enjoy reduced turnover costs, workers face a trade‑off between stability and mobility. Monitoring these dynamics will be crucial for businesses, employees, and policymakers alike as they navigate the evolving terrain of work in Canada.