As Canada’s employment grows, vacancies remain steady
A large number of job openings were recorded in July 2022, and payroll employment continued to grow throughout the month.
As of July 2022, the labor market analysis published by Canadian Statistics shows that Canada’s employment is projected to grow by 11.9 percent. The unemployment rate in Canada in July 2022 was 964,000, a record number.
Job openings findings
It is estimated that about 73,000 fewer job openings were available in July 2022 than in July 2021. Nevertheless, more than 130,000 more positions are now open compared to July 2021.
After considering seasonal variables’ impact on the labor market, Statistics Canada estimated that half of the employment losses between June and July 2021 were attributable to seasonal variables.
The healthcare and social assistance industry and the lodging and food service industry had the most openings in July 2022.
Impact on industries
Although there were more job openings than fillings, several industries also experienced a dip.
More than 20,000 job openings in the hospitality and food industries were filled in July, but the sector’s job vacancy rate was. It measures the total number of open positions as a proportion of all open positions (vacant or filled). Which remained stable at 10%, nearly twice as high as the national average of 5.4%. This indicates that there is a high demand for jobs in this sector.
The social support and healthcare sectors experienced few changes in job openings. In July 2022, the unemployment rate was 6%, with little changes from June. Despite this, there is a growing need for personnel in this field as staff shortages have created delays in hospital services. Notably, those provided by emergency departments. In response to these workforce shortages, Canada has even gone so far as to abolish restrictions on permanent residence (PR) for physicians currently living there.
The implications
The number of open positions is a reliable sign that the recruiting environment is still favorable in Canada. Particularly, professionals in the hospitality and food services, healthcare, and social support sectors appear to be in very high demand. It will likely continue to be so, with a decline in job openings hardly making a dent in these sectors’ above-average job vacancy rates.
A relaxation of COVID laws in Canada has also resulted in a return to normal business operations, boosting enterprises to reach their pre-pandemic levels. Consumer spending is shifting toward services, driving these industries’ growth.
Waiting opportunity
A substantial skills gap noted by companies is one development that runs concurrently with. But has an impact on the robust hiring environment.
In 2021, more than half of Canadian firms (56.1%) stated that the majority of their staff lacked the necessary skills to do their jobs at the required level. For instance, the most significant incidence of any industry was recorded by companies in the lodging and food services sector (78.8%).
But even though the industry with the fewest employees reported a skills gap. Over a third (34.3%) of firms said their workforces lacked the necessary abilities.
By aiming for record levels of immigration welcoming 430,000 newcomers each year. Canada hopes to address these labor and skill shortages. Moreover, Canada will make a public update to its immigration policy. After it submits its immigration levels plan by 1st November.
