The Labour Force Survey (LFS) results for August 2022 have been released by Statistics Canada. Since records began in 2015, Canada’s unemployment rate has decreased from 1,038,000 to 989,000. A surprising number of firms (38%) anticipate having difficulty finding talented workers in the coming three months.
According to the LFS, employment fell by 40,000 jobs. The national unemployment rate increased by 0.5 percentage points to 5.4%, the first increase in seven months.
In particular, Manitoba, British Columbia, and Nova Scotia experienced a decline in employment, whereas Quebec experienced an increase.
Strong ties to immigrants
According to Statistics Canada, the unemployment rate for immigrants fell to 7.6% in August, which was the lowest level ever recorded (since data have been available since 2006). According to the poll, as of August 2022, 875,000 of Canada’s labor force members were immigrants, disproportionately concentrated in major cities like Toronto and Montreal.
Why is the number of open positions so high, and why are immigrants more successful in the employment market?
It is becoming more common for Canadians to explore changing jobs. The percentage of permanent employees who planned to quit their job within the following 12 months. As reported by the LFS, was 6.4% in January 2022; by August 2022, it had risen to 11.9%, nearly doubling in the six months after the survey’s initial data collection. The most often cited reason for intending to quit their job in August was further career changes.
Statistics Canada reports that 307,000 Canadians left their employment in August for retirement later in the year following retirement age. This issue is anticipated to persist in the coming years because an increasing portion of Canada’s population is older.
These two elements contribute to the seeming success of immigrants in the Canadian labor market in August.
What does this signify for those looking to immigrate?
Should conditions remain the same, immigrants to Canada may have a bigger role to play in the labor market in the years to come as job openings and unemployment rates both rise. The LFS even takes the time to mention this:
Immigration has played a significant role in sustaining labor force growth. In recent years as an increasing number of Canadians have reached retirement age and left the workforce. As a result of Canada’s long history of addressing many of its labor market needs through immigration, economic immigration streams remain the most popular. The Provincial Nominee Program (PNP) is only one of the programs managed by Express Entry. The program also manages other programs including the Federal Skilled Trade Program – (FSTP) Canadian Experience Class – (CEC), and the Federal Skilled Worker Program – (FSWP).
Canada is poised to welcome 431,000 immigrants this year. For the first time will be able to accept more applicants through PNP than all Express Entry managed programs combined.
