Strong job growth adds strain to already small candidate pool
The Employment Change data was released this morning by Statistics Canada showing strong growth overall and 42.6% higher than forecast result for the month of June. The expectation was to be a net increase of 22,300 jobs, Canada instead adding 31,800 jobs through the period. In previous months at Goldbeck Recruiting we reported that hiring managers were already finding it difficult to identify available job seekers. With this strong growth, matched by similar positivity in product and service demand, it will become an even more imbalanced, candidate-favoured market.
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Henry Goldbeck, President and Senior Recruiter, says “it looks positive, it was already an employees market and this is going to put more pressure on that. Companies need to have their processes in place if they’re looking to make a hire, they need to move very quickly. It’s still important to make sure you’re making the right decision and not hire indiscriminately, but the valuation and decision making process needs to be set in advance to be able to make an offer as soon as possible. Candidates might be fielding multiple offers and the longer the process takes the more competitive it will be.”
He also points to the tariffs becoming active across Canada and US borders. “There’s a great deal of uncertainty around the results of these actions and many companies believe this is going to have negative effect on the economy. Everyone is watching it closely and reacting where they can, whether it’s through more bearish production targets or seeking new markets within the country.”
Historical Canadian employment data
Looking back on the previous six months (ending May 31), employment increased by 1.3%, lead by a steady growth in accommodation and food services sector. Scientific, professional and technical sectors, along with transportation and warehousing, also showed signs of increased growth in terms of employment. In addition to this, finance, insurance, real estate and rental and leasing also displayed a rise in employment.
Some sectors have experienced a decline. Manufacturing was down by 18,000 in May, although virtually unchanged if compared with 12 months earlier. Employment in this industry reached a five year peak in December 2017, and has been trending downward in 2018. Despite the manufacturer’s anticipation to spend 6.2% more on tangible capital assets in 2018, the industry has been descending since the last few months in 2018.There has been no significant change in the number of employees in public and private sectors and among self-employed workers.
Average weekly earnings in June 2018 increased in 6 of the 10 largest industrial sectors led by accommodation and food services, compared with little change in earnings in wholesale trade, educational services, manufacturing and administration and support services. Weekly earnings of non-farm employees increased in 7 provinces, led by Quebec, with minor change in Nova Scotia, Saskatchewan and Newfoundland and Labrador.