As per Statistics Canada’s February Labour Force Survey, Canada displayed an unexpected severe drop in the unemployment rate up to 5.5 last month compared to February 2020.
With numerous measures taken across Canada, Omicron subsided in February, resulting in the quick recovery of Canada’s labor force.
All the restaurants, retailers, gyms, and theatres also turned flexible since the unemployment rate significantly shifted from 5.7 to 5.5.
Canada recorded 337,000 new jobs in February with a drastic rise in the industries including accommodation, food services, information services, culture, and research.
It’s extremely noteworthy to observe that increased job opportunities have outnumbered the workforce making it difficult to hire people specifically in the accommodation and foodservice industries.
The simultaneous increase in wages also resulted in a prominent increase in living costs. The Canadian Price Index reported a rise up to 5.1 percent since September 1991.
According to the 2022-2024 Immigration Levels Plan, Canada is on its way towards increasing its number of permanent residents coming to Canada over the next three years.
The economist Liam Daly in the Conference Board of Canada stated that “The increased targets are a recognition of the labor shortages plaguing many sectors of the Canadian economy.” He further added that, during the pandemic, the number of job vacancies in Canada had increased dramatically.
Due to pandemics, international mobility has been disturbed, and the government depends on converting the status of temporary Canadian residents to permanent residents of Canada.
Even as status conversions remain an important immigration route, many temporary workers have already been working.
To overcome the pressure or labor scarcity, the government should work to raise immigration from other countries.
