Canada Labour Market and Employment Update, March 11, 2022
Canada Labour Market
Private Sector Leads the Way in the Canada Labour Market
Canada Labour Market Equity Improves But Gaps Remain
No Great Resignation in Canada
These factors impact the Canada Labour Market in many ways, including adding uncertainty among employees, confusion among recruiters, frustration among hiring managers, and increased risk for employers.
Employees notice their purchasing power shrink and consume news with mixed or nuanced messages about inflation. Messages surrounding the causes of inflation are politically torqued with a spin—objective and unbiased information on the topic is challenging to find. Anxiety is created not only by actual and perceived loss but also by a fear of missing out as news of a tight-labour market comes from loud and vocal stakeholders. Employees agonize over whether they have pressed hard enough to get more favourable terms with their employer and in the labour market. Speculation over the expected length and extent of current inflation levels creates more uncertainty about what people should pursue and how they should position themselves to navigate these conditions.
Recruiters receive cold responses and combative candidates with aggressive positions regarding salary expectations. There is movement in the market, and a mismatch of skills, uncertainty, and physical isolation create communication challenges during the exchanges. As recruiters fall short of meeting fill rates, they seek to increase terms and conditions. Increased rates do not create more candidates when looking in the wrong places. Increased rates do create structural costs increases for businesses.
Hiring managers are frustrated by difficulty managing budgets and risk and delays in recruiting, and employees with demands at times with overtures to leave.
Employers face increased input costs, downward price pressure, uncertain financials, and rough market conditions. The Canada Labour Market, if approached without foresight and sophistication by employers, recruiters and hiring managers, has the potential to exacerbate inflationary pressures as what occurred in the United States.