Statistics Canada revealed the latest results concerning the job vacancy and wage survey reports for this year’s second quarter. The vacancies have risen to 4.7 percent in 2022’s first quarter, with a 42.3 percent increase in 2021’s second quarter. Canada is currently witnessing a growth rate in vacancies of 5.7 percent because as per reports, there are over one million Canadian job vacancies in all sectors.
The number of vacancies aligns with the number of vacant job positions. Consequently, the labor market requirements give way to these vacant job positions.
The labor demand is rising like never before, which is further surpassing payroll employment. As a result, the number of vacancies is running too high. Canadian job vacancies are rising on a massive scale.
Increased wages not aligning with the consumer price index
As per official reports, the hourly wages on average in all the sectors have increased significantly to 5.3 percent in 2021’s second quarter. The average hourly wage is $24.05. However, the increase differs from the average hourly wage concerning all employees. The currently employed people witnessed a rise of just 4.1 percent when compared to others.
The increased average hourly wages don’t account for an equal increase in the Consumer Price Index (CPI). CPI saw a growth of 7.5 percent in comparison to 2021, during the same time.
The five employment sectors expected an increase in wages. Additionally, the highest increase could be seen in sectors including the scientific, professional, and technical sectors. The increase is up to 11.3 percent equivalent to $37,05, an average hourly wage. The average wage in wholesale trade jobs is $26.10 per hour.
Contrarily, the percentage of retail trade wages increased to 5.7. This percentage is lower than the CPI. The healthcare and social assistance sectors saw an increase of 3.6 percent in the previous year with $25.85. On the whole, the maximum job vacancies report hourly wages equivalent to or below the CPI in 2022’s second quarter.
Six Canadian provinces experience higher vacancy rates
Six Canadian provinces experienced increased vacancy rates in the first and second quarters of this year. Ontario saw the largest percentage increase of 6.6 percent, with 379,000 vacancies available. Nova Scotia also witnessed an increase of 6 percent in job vacancies. However, in Canadian provinces such as Manitoba, Quebec, Alberta, and British Columbia the rise was between 5.6 and 2.4 percent.
New Brunswick remains an exception with a decrease in the number of job vacancies. Its percentage declined to 6.1 percent, with 15,200 open vacant job positions. However, as far as the other provinces or territories are concerned, no significant change was observed.
Unemployed individuals had a 1.1 ratio for every Canadian job vacancy. This ratio is down as compared to 1.3 for every Canadian job vacancy in 2022’s first quarter. The ratio of 2.3 people also existed the previous year during the same period.
Additionally, provinces such as British Columbia and Quebec reported a ratio of 0.8 for each Canadian job vacancy. Interestingly, Newfoundland and Labrador reached a 3.3 ratio of unemployed individuals for each vacancy. This ratio is beyond the average.
Vacancies concerning each sector
Healthcare and Social Assistance Sectors
There was hardly any change in the number of vacant job positions as far as the healthcare and social assistance sectors are concerned. The number was between 135,300 and 136,100 in the first and second quarters of 2022. The percentage was 6 percent for the same. In comparison to the previous year’s data, there is a massive increase in the percentage of 29 percent in the latter quarter of 2021.
The scarcity of staff even led to the few hospitals providing fewer services and temporary closure of emergency rooms as well. The healthcare sector in Manitoba recorded the maximum employment vacancy rate, up to 6.7 percent.
Accommodation and food services
The accommodation and food services sector also observed a massive growth rate of 12.7 percent, with 149,600 vacant job positions in the latter part. The complete job vacancy rate turned out to be the highest across all sectors, which is 10.9 percent. This percentage is specifically observed in British Columbia’s Kootenay region.
Other sectors- technical, scientific, and professional
The other sectors including the technical, scientific, and professional services reached a peak with 74,600 vacant job positions. This percentage was higher by 8 percent in the previous quarter and 79 percent more than 2020’s first quarter. Toronto, Vancouver, and Vancouver along with the surrounding areas largely contributed with over 50 percent of these vacancies.
The field of natural and applied sciences witnessed the highest job growth rate with 13.3 percent. The category of tech occupations falling under the natural and applied sciences also largely increased to 9.6 percent.
Conclusion
Canadian employers are undergoing significant challenges in finding the right people for their job requirements. They are failing to fill the job vacancies and even a longer recruitment process. Consequently, the unemployment rate is extremely low, while Canadian job vacancies are rising on a massive scale. Additionally, only 44 people could get a job for every hundred vacancies in the second quarter this year. The Canadian labor market shortage will deteriorate further and too massively by 2030. The situation is likely to arise due to the nine million people who’ll be meeting their retirement age (around 65 years) as well as the reduced birth rate.
