Despite risks of a major economic slowdown, the Canadian job market stays red hot
Central bankers and the finance industry have made no secret of their desire to cool the tight labour market in response to inflation, but new survey results suggest that business owners aren’t planning on trimming staff any time soon.
A 51 per cent majority of businesses polled in the latest State of Canadian Hiring report, produced by consulting firm Robert Half, say they are planning on adding new permanent positions in the next five months — up from 40 per cent six months ago. It’s not the only study that suggests this, either: in January, a report from ManpowerGroup also suggested that hiring will remain strong this year.
“Employers across Canada will continue to search for skilled workers in the first quarter of 2023,” Darlene Minatel, country manager of ManpowerGroup Canada, said in the release. “A tight labour market is to be expected during times of high inflation, as companies try to meet demand.”
Robert Half’s study also forecast particularly strong growth in the contract market, with 65 per cent of companies stating that they plan on leveraging more contract professionals this year. The contracts market has been strong throughout the pandemic, as more people opt to create diversified income streams.
It might be overambitious to predict what this will mean for inflation, but it does seem to give a bit of credence to the “soft landing” approach preferred by the Bank of Canada, which is counting on robust hiring and job availability to soften the felt effects of interest rate hikes. (Strong jobs numbers in the U.S. last week also seem to back up the soft landing target.)
“The start of the new year is an especially robust time for hiring, as new projects begin and headcount budgets are confirmed to support fresh business goals”, said David King, senior managing director, Robert Half, Canada and South America. “Employers should be prepared to offer competitive salaries, perks and benefits to attract and retain top talent in this continuing tight labour market
Content written by Kieran Delamont for Worklife, a partnership between Ahria Consulting and London Inc. To view this content in newsletter form, click here.