September saw a 0.2% decrease in the country’s unemployment rate, bringing it to 5.2%. While the September labor Force Survey from Statistics Canada showed encouraging employment gains, worries about an aging population and rising retiree departure rates lingered in the background.
A modest decrease in employment was reported in Ontario, Prince Edward Island, and the Northwest Territories in September. Compared to modest increases in British Columbia, Manitoba, Nova Scotia, New Brunswick, Yukon, and Nunavut. Canadian core-aged women’s employment grew, while men’s employment held steady. As a whole, these indicate that Canada is currently experiencing a robust hiring climate and overall economic success.
The loss of employment in manufacturing, warehousing, entertainment, information, culture, and public administration was more than offset by the growth in employment in educational, health, and social support services. As a result of higher post-pandemic expenditures in the service sector, a steady return to pre-pandemic business levels has been helped.
The length of unemployment for Canadians seeking work also decreased, with a dramatic 9.7%. Decrease in long-term employment (the number of people who have been continuously unemployed for 27 weeks or more).
This is another positive indication of a healthy hiring environment. The national labor market will continue to be most concerned about the need to handle a persistently high number of job openings, as witnessed since July. Despite the fact that these continue to be positive indicators of economic performance and highlight potential in Canada, there are certain longer-term patterns that are less encouraging.
Decreasing the labor force
The number of persons who are employed or jobless as a whole decreased by -0.4% in September. As well as the participation rate also decreased by -0.1%. These decreases are in accordance with yearly and monthly patterns, which emphasize the necessity of ongoing labor recruitment in Canada. The cumulative drop in the country’s labor force participation since 2002 is 2.4%.
In light of the high unemployment rate and aging population—the latter of which is a serious internal issue that Canada must constantly address. These policies are still very necessary. However, the reduction becomes much more significant in light of a subsequent trend:
Almost a million adults between the ages of 55 and 64 said retirement was their primary activity in September. As a result of an aging population, more and more workers are choosing to retire, which reduces Canada’s labor force.
Canada will need to take further steps to prevent a serious labor shortage as more of its working population reaches retirement age (since 2019, the number of Canadians 65 and older has increased by 11.6%, compared to only a 3.5% increase in the population of persons of working age). As well as in the face of vacancies and a contracting labor market.
The significance of foreign employees
With a shrinking labor force and an aging population, Canada needs immigration to maintain economic development and health.
The labor pool cannot be restocked naturally in Canada since more people are reaching retirement age or approaching it. As well as the fertility rate is low. Instead of promoting immigration, the government will try to alleviate the market labor and skills shortages.
A record 430,000 immigrants are expected to be admitted by IRCC each year to address shortages (such as those in the healthcare and social support industries). Canadian immigration levels will also be presented by November 1st, which will serve as the government’s policy framework for newcomers.
