Canada’s job vacancies are consistent due to low unemployment rates as well as an increased participation rate. Statistics Canada concluded this in its latest Labor Force Survey, indicating healthy employment.
Canada’s job vacancies are consistent due to low unemployment
The latest report consisted of the details of September this year, stating that the current unemployment rate stood firm at 5.5 percent. It reflects an unchanged status from the beginning of this year.
In September 2023, the employment rate stands consistent at 62 percent. This reflects that employment increased for both men and women from 25 to 54 years. However, employment for those between 15 and 25 or above 54 years saw hardly any age.
These key findings of the report show consistency with a rigid labor market in Canada. This means that unemployed people are filling the vacant positions expeditiously. This is significantly due to the recent rise in the Canadian population. Canada’s workforce witnessed growth, with 381,000 new individuals from the beginning of 2023. This number primarily comprises new immigrants finding work and settling in the country. This gave rise to the record-setting trend of annual immigration to combat existing labor shortages in primary provinces and employment areas.
Industries that witnessed significant changes
Most developments and changes that the industries witnessed in 2023 were positive. The figure for people who attained employment in educational services was 66,000 in September. This emerged as compensation for the reduced figure of 44,000 in August. Additionally, there was a rise with 19,000 new positions in transportation and warehousing.
On the other hand, there were some alterations in the following employment positions in September this year:
- Construction sector – 18,000 positions
- Finance, real estate, leasing, and rental with 20,000 positions
- 12,000 positions in the Information, Culture, and Recreation sectors.
Category-based selections and the targeted industries
IRCC conceptualized the category-based selection to address the labor market gap in Canada. This proves that candidates having professional experience in specific sectors might receive ITAs if they fulfill the condition of having appropriate professional qualifications. The emphasis will shift from the CRS scores to their professional achievements. Candidates with experience in specific sectors may be eligible for Canadian immigration through any of the new categories.
The transportation and warehousing sector observed a rise in employed positions in August 2023, with 13,000 individuals. In September 2023, the sector saw a rise with 19,000 employed positions.
The transportation and warehousing sectors grew with 82,000 positions since January. This accounts for 34.4 percent of the overall employment rate rise across all sectors in the same period.
In September, the construction sector saw reduced employment by 18,000 employed positions. This aligned with the increased employment with 34,000 positions in August. Employment in the construction sector in January 2023 underwent a dip of 3.4 percent or 55 positions.
Contrarily, the healthcare and social assistance sector slightly changed in September this year. The year-over-year increase of 2.5 percent or 60,000 was prevalent. However, the employment rate remained equivalent to the average growth rate in all industries over the year. This indicates a rise of 2.8 percent. The Job Vacancy and Wage Survey reflects that the unfilled vacancies are high in the healthcare and social assistance sector. This accounts for 19.9 percent of all job vacancies.
The Canadian provinces witnessing massive employment changes
Quebec observed a rise in employment, with 39,000 employed positions in September this year. This accounts for a rise of 0.9 percent after undergoing hardly any change in the previous seven months. The unemployment rate looked stable at 4.4 percent compared to the previous month. The employment rate surpassed the working-age population rise at 62.3 percent.
British Columbia witnessed a rise in employment, with 26,000 positions. Also, it indicates a monthly growth of the province for the second time consecutively. The provincial unemployment rate remained the same as in August. This means in September, too, the rate stood at 5.4 percent. Ontario’s performance also appeared quite similar, with 19,900 new employment vacancies in all industries.
Contrarily, Alberta underwent a reduction in employment by 38,000 employed positions in September. Furthermore, this nullified the overall employment increase in the previous two months with 30,000 positions. Also, New Brunswick underwent an employment decline in September. This means a reduction of 2,700 positions or a decline of 0.7 percent in their Canadian labor force.
However, other provinces witnessed employment gains; they’re as follows:
- Manitoba saw an increase of 8,800 employed positions.
- Saskatchewan underwent an increase of 6,000 positions.
- Nova Scotia underwent a rise of 3,200 positions.
- In September, Prince Edward Island witnessed a rise of 2,700 positions.
Summary of Canada’s job vacancies and low unemployment
The Labor Force Survey emphasized that Canada’s rigid labor market is still prevalent. Even though Canada welcomed a record-breaking number of immigrants in 2023, surprisingly, the employment and unemployment rates showed consistency in 2023. Furthermore, it reflects the significance of immigration to combat the record-high labor force shortages.
Notably, the labor shortage is still prevalent in the country, with a higher number of vacancies in the healthcare sector. Even though IRCC has introduced this sector as the targeted occupation in the category-based draw, the situation persists. This also indicates that the healthcare sector still has a higher number of positions. However, immigration remains the chief factor in addressing these shortages.
On the other hand, IRCC is able to bring about a positive change through the launch of these category-based draws. With the transportation and housing, as well as construction sectors, the Canadian workforce has witnessed several gains. As a result, there has been a rise in productivity and employment. Further, it is imperative that IRCC will continue to hold Express Entry category-based draws in the future. Also, the department might consider other sectors or industries to address the employment shortage. However, the long-term outcomes of these strategies remain uncertain as of now.
Essentially, all Canadian provinces witness a labor force shortage. However, the thinly populated regions in Canada have a higher shortage. This makes immigration in such regions all the more crucial, with an increased emphasis on Canada’s Provincial Nominee Program.
Do you have any queries on Canadian immigration? Get in touch with our immigration representatives at MakeHomeCanada by writing to us at [email protected].
