Canada regains position with 90,000 jobs in August

Statistics Canada’s Labor Force Survey suggests Canada’s economy is on the path of moving upwards. The employment level of Canada spiked by 90,000 in August. The number of people employed in Canada almost caught up to pre-pandemic levels in August. These gains from August and the months prior brought Canada’s employment up to just 156,000 employees short of February 2020 levels, which is the closest it has come to pre-pandemic levels.

The reflection of labor market conditions during the week of August 15 to 21 is established by Statistics Canada’s data. By this time, most regions in Canada had rolled back public health measures to near-final stages. Along with it, the border had opened up to fully vaccinated tourists from the U.S. For the first time since March 2020, the tourism industry could expand to individuals from the States.

Employment increases were mainly in services-producing industries, mostly in accommodation and food services. The information, culture, and recreation industry also saw significant gains. The number of people working in construction increased for the first time since this past March. Employment was up in Ontario, Alberta, Saskatchewan, and Nova Scotia. All other provinces had little or no change.

Unemployment was at its lowest rate since the onset of the pandemic at 7.1 percent, though the rate for visible minorities was little changed for the second month in a row. Long-term unemployment dropped almost 7 percent in August but remained 120 percent above pre-pandemic levels. To learn more about the employment opportunities and vacancies available in various sectors and other immigration updates connect with us at Vashist Immigration, our licensed consultants will help you with your queries.

Recent immigrants witness up-trending employment rate

Immigrants who landed in Canada within the past five years continued to see an upward trend in employment to nearly 70 percent, more than six percentage points higher than August 2019. Part of the reason for this is due to the reduced number of new immigrants admitted in 2020. Those who have been in Canada for more than five years had an employment rate of nearly 59 percent, down one and a half percentage points year over year.

Visible minorities witness Employment

In August, the employment rate increased almost five percentage points among Filipino Canadians to about 78 percent. Employment for Black Canadians was down about four percentage points to nearly 72 percent. White Canadians were employed at a rate of almost 71 percent, little changed from the month before.

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.