Huge Rise In Job Vacancies In June In Canada 2021

815,800 job vacancies in Canada in June

As per Statistics Canada’s latest job vacancy report, the country witnessed job vacancies in the service sectors like in food services, which drove up the number of vacant positions in Canada. There were a total of 815,800 job openings in June, a 22 percent increase from May. There was a rise in job openings in accommodation and food services in Canada. As restaurants started reopening in June, there were 129,100 vacant positions in accommodation and food services jobs. There were more openings in this sector than even health care and social assistance, which had the highest number of vacancies the month before. Canada’s retail trade sector came in third place.

June also had the highest job vacancy rate since Statistics Canada started collecting data in October 2020. There is a difference between the job vacancy rate and the number of job vacancies. The vacancy rate is the proportion of vacant positions compared to the number of all positions in a sector. In June, Canada’s overall vacancy rate reached 5 percent. Accommodation and food services also had the highest job vacancy rate of all sectors at more than 12 percent. In restaurants, employers were actively recruiting to fill vacant positions as restaurants began opening up outdoor dining starting in late May. Among the provinces, B.C. and Quebec had the highest job vacancy rates. Manitoba and Nova Scotia had the lowest job vacancy rates. For more information on the job vacancy report and other job opportunity updates, contact us at Vashist Immigration, our licensed consultants will guide you thoroughly.

Labor shortages likely to intensify

Due to the overwhelming economic instability, in 2020, workers held off retiring and switching jobs due to dissatisfaction. These workers may now start quitting their jobs, leading to an increase in the number of vacant positions. Also, many workers in service sectors that were affected by the pandemic may have left their positions due to extended shutdowns.

The report, says a high job-vacancy rate can hinder economic growth. Businesses may be forced to operate at reduced capacity. Employees are now in a stronger bargaining position to negotiate higher wages and better benefits. The tight labor market may also put upward pressure on wages, leading to higher consumer prices. Provinces with the highest job vacancy levels may face challenges hiring for lower-paid positions. Although wages in accommodation and food services were up in June, average wages remained 57 percent below other service-sector jobs. This may explain the increase in food services vacancies and may continue to affect the sector if workers have left permanently.