Canada’s nursing workforce grows, but shortages and wage pressures persist

New Statistics Canada figures show registered nursing employment has increased by more than 100,000 since 2019, while vacancies remain elevated and inflation-adjusted wages have barely improved.

Canada’s nursing workforce has grown significantly since the COVID-19 pandemic, but persistent staffing shortages and limited wage growth continue to challenge the healthcare system, according to a new Statistics Canada report released October 19.

The report, Canada’s Health Workforce: An integrated summary based on Statistics Canada data, 2025, found that employment in registered nursing occupations increased by 33.3%, or 102,800 positions, between 2019 and 2025.

Registered nursing occupations, which include registered nurses, registered psychiatric nurses and nurse practitioners, experienced the largest employment increase among the health occupations examined over that period.

In 2025 alone, registered nursing employment grew by 25,300 positions, an increase of 6.5% from the previous year.

Despite these gains, the findings reveal an uneven recovery across nursing professions, with ongoing recruitment pressures and wages that have struggled to keep pace with inflation.

Practical nursing shortages remain a concern

One of the report’s most significant findings involves licensed practical nurses (LPNs).

While registered nursing employment expanded considerably, the number of employed licensed practical nurses showed no net growth between 2019 and 2025.

At the same time, the vacancy rate for licensed practical nurses remained at 12.3% in 2025, nearly five times the 2.5% rate recorded in 2016.

Although the rate has declined from its 2023 peak of 18.7%, it remains substantially higher than the national average across all occupations.

Registered nursing occupations recorded a vacancy rate of 5.0% in 2025, while nurse aides, orderlies and patient service associates had a vacancy rate of 4.7%.

These figures suggest that workforce pressures remain concentrated in certain nursing roles, even as overall employment continues to increase.

Wages struggle to keep pace with inflation

The report also raises concerns about the purchasing power of nursing wages.

Among registered nurses aged 25 to 54, average hourly wages adjusted for inflation were 1.4% lower in 2025 than in 2019.

Licensed practical nurses in the same age group experienced a 0.6% decline in real average hourly wages over the six-year period.

While nominal wages have increased, inflation has largely offset those gains.

Across all health occupations, inflation-adjusted average hourly wages for workers aged 25 to 54 increased by 3.2% between 2019 and 2025.

The comparatively weaker wage performance among nurses may add to ongoing discussions about recruitment, retention and compensation across Canada’s healthcare system.

Healthcare employment reaches 1.7 million

Canada’s broader healthcare workforce has also expanded.

In 2025, more than 1.7 million Canadians were employed in health occupations, representing 8.2% of total national employment.

That was an increase of 81,200 workers from 2024 and 279,400 from 2019.

However, workforce demand continues to exceed available staffing in many areas.

Statistics Canada recorded 67,900 job vacancies across health occupations in 2025. Although this was below the 2023 peak of 90,700, it was nearly three times the number recorded in 2016.

The overall vacancy rate for health occupations was 4.5%, compared with 2.7% across all occupations.

Implications for Canadian hospitals

The findings highlight the importance of looking beyond total employment growth when assessing healthcare staffing.

While more nurses are entering or remaining in registered nursing occupations, persistent vacancies among practical nurses and other healthcare workers can create challenges for hospitals, long-term care facilities and community healthcare providers.

Population aging, increasing demand for health services and workforce retention remain important pressures.

The report suggests that workforce planning will require continued attention to recruitment, retention, compensation and the distribution of healthcare professionals across occupations.

For Canadian hospitals, the central challenge is not simply increasing the number of healthcare workers, but ensuring that sufficient professionals are available in the roles and locations where patients need them most.

Source: Statistics Canada, Labour market characteristics of Canada’s health workforce, 2025, released October 19, 2026. Read the official Statistics Canada release.

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