Canada has always been home to immense job opportunities and has always welcomed skilled immigrants. Since 1976, Canada reached its lowest unemployment rate of 5.1 percent.
Statistics Canada conducted a Labour Force Survey recently, according to which it was reported that the Labour Force attracted 39, 800 jobs in May based on full-time work. 135,000 people gained employment on a full-time basis. Women workers of all age groups led in terms of gains.
James Orland, TD Bank Economist, commented that with the beginning of the Patio-filling ritual and plans for pending vacations, employers are on the lookout for suitable workers to fill in the job vacancies to meet the ever-rising demand for workers.
As a result, job vacancy rates have drastically risen to record-breaking levels proving that Canada’s economy is more than flourishing in terms of full employment.
Statistics Canada conducted Job Vacancy and Wage Survey in March, and the results stated that the ratio between unemployed people and job vacancies was 1.2 because of the underlying pressures of the labor supplies for employers who were seeking to hire and retain employees. Simply put, Canadian employers are almost always in need of appropriate workers and this doesn’t seem to end.
According to Sean Adams, the number of people retiring due to an aging population will outnumber the newcomers joining the workforce. The consequently reduced participation rate will further result in lower unemployment rates even though Canada’s economy meets the minimum employment rates. Those looking for jobs will have numerous opportunities but employers and businesses will find it harder to get staff. The labor shortages will only increase with time.
Labour Supply does have potential sources in the form of those people who would like to work but aren’t directly active participants in the labor force. May reported a total number of 409,000 people who were potential workers. The Job Vacancy Survey reported approximately 1 million job vacancies in Canada, which is way more than the percentage of potential workers.
Canada will need to keep up its welcoming approach toward the immigrants to meet the demands of the labor shortage in 2022.
Canada is looking forward to welcoming over 431,645 permanent residents. This will set a new record for sure. By the first quarter of 2022, Canada has already welcomed 114,000 new permanent residents and it continues to work for its target.
