The unemployment rate in Canada hit a new record edged down from 0.1% to 5.1% in May. It is the lowest rate when compared to available data since 1976.
As per the statistics data of Canada of labor force survey, the labor force added 39800 job vacancies in May and mostly vacancies are in full-time work. In the last month, more than 1,35000 people found full-time jobs in Canada.
The increase in May was primarily driven by an increase in employment among women, especially the youth and core-aged women, who range from 25 to 54 years. Additionally, minorities received extensive employment benefits.
According to statistics results of the job vacancy and survey of salary of Canada for March, the job vacancies ratio of unemployed people hit an all-time low of 1.2, citing the labor supply facing employers seeking to attract and retain employees. Simply put, employers in Canada are not getting enough workers for work, an issue that may be here to stay.
With a crumbling population, in the coming years, the number of retirees exiting the employees will beat entering new workers. “The upcoming drop-in participation rates will result in the unemployment rate remaining low even if the Canadian economy achieves limited employment growth. This is good news for job seekers, but it may be difficult for businesses to find staff. In other words, the current labor shortage could only get worse.”
In May, 409,000 of these were potential employees. However, the number of potential workers is small compared to the more than 1 million job vacancies reported in job vacancy surveys.
Canada must continue to welcome immigrants to help meet these labor demands. In 2022, Canada is set to accept 431,645 new permanent residents, a new record. In the first quarter of 2022 alone, Canada has achieved approximately 114,000 new permanent residents and is well on track to meet this target.
Although May data still shows a warming economy, we should expect employment soon. The Bank of Canada’s recent rate hikes will take hold to contain inflation, and with supply chain woes continuing, an economic slowdown is likely this summer.
