You’ve probably noticed it: the Canadian job market is slowing down. In August 2025, the unemployment rate moved up to 7.1%, the highest it’s been in years, with the economy shedding 66,000 jobs that month (Global News).
What Nonprofits Are Feeling
Nonprofits like to think of themselves as “different” and often immune, but that’s not the case. Nonprofits are a huge part of Canada’s economy: they employ about 2.8 million people and make up roughly 8% of GDP (Imagine Canada). In the fourth quarter of 2024, employment in nonprofit institutions dipped 0.1%, the first decline since 2020 (Statistics Canada).
What that looks like on the ground:
- Hard-to-fill roles: About two-thirds of nonprofit employers report struggling to fill positions, often because the skills they need are in short supply (Imagine Canada).
- Retention issues: High staff turnover can disrupt service delivery and put extra pressure on the team that stays.
- Budget realities: Funding pressures mean many nonprofits rely on part-time or contract roles rather than full-time hires.
What This Means for Job Seekers
This situation is unusual, and it probably won’t last long. In my years in recruiting, we’ve mostly had a talent shortage, except for a brief period in 2020 (September to December). Then 2021 exploded again, and talent was scarce once more.
Now, if you’re looking for a nonprofit role, it’s a competitive market:
- Fewer openings, more applicants: You need to stand out. I’ve always said, quantify your successes: money raised, gift ranges, annual fundraising goals. Activity metrics like donor and prospect meetings are also powerful.
- Skills over titles: Nonprofits care more about what you’ve done, your responsibilities, your achievements, than the exact degree you hold.
- Flexibility is key: Part-time, hybrid, or contract roles are becoming more common. Being open to these can get you in the door faster.
Navigating This Market
Everyone, nonprofits and job seekers alike, needs to be a bit more strategic. Organizations need to think carefully about the roles they’re hiring for, what skills truly matter, and how to attract the right people. Job seekers need to proactively showcase their skills, network, and stay open to different types of opportunities.
This is where having someone who really knows the sector can quietly help. A recruiter isn’t there to take control; it’s about providing insight into the market, sharing information about trends and opportunities, and helping match the right people with the right roles. For employers, this can save time, reduce the risk of a bad hire, and ensure the right talent sees your opportunity. For job seekers, it’s guidance, perspective, and access to roles that might not even be advertised yet.
The Takeaway
The Canadian job market is changing, and nonprofits are feeling it just as much as anyone else. But slowing growth doesn’t mean standing still. Stay proactive, understand the shifting landscape, and leverage expertise where it makes sense. You can navigate this market successfully, whether you’re hiring or looking for your next role.