State of Hiring
Canada’s economy faces a post-pandemic reckoning. Following a strong first quarter, the economy experienced a slowdown by the second half of 2023. At the same time, the unemployment rate edged upward to 5.8% in December, nearly a full percentage point higher than the record low observed in June and July of 2022. This trend underscores the reality that the Canadian labour market is finally catching up with a softening global economy.
Canada’s economy faces a post-pandemic reckoning. Following a strong first quarter, the economy experienced a slowdown by the second half of 2023. At the same time, the unemployment rate edged upward to 5.8% in December, nearly a full percentage point higher than the record low observed in June and July of 2022. This trend underscores the reality that the Canadian labour market is finally catching up with a softening global economy.
Still, there’s positive news for employers: following two years of global labour market tightness, Canada’s job vacancy rate has continued its steady decline. The rate, which represents the number of job vacancies expressed as a percentage of labour demand, dropped to 3.8% in the fourth quarter of 2023—its lowest point since the first quarter of 2021. Although historically high, this means employers should find it easier to fill roles that may have sat empty in recent months. However, while it now appears “easier” based on the volume of job seekers, pinpointing and attracting the right talent remains challenging for employers. Sustained immigration to the country should also continue supporting improvements in labour supply, which will contribute positively to the country’s economic outlook.
Even as tightness in the labour market cools, the competition for pay remains hot. In fact, the average hourly wage growth for permanent employees accelerated to an annual rate of 5.7% at the end of 2023. That’s the highest rate in nearly three years. Among the job sectors that saw wages increase the most in 2023 are the professional, scientific, and technical services and health care and social assistance sectors. These industries also experienced a significant employment increase at the end of 2023. The professional, scientific, and technical services sector added 46,000 employees in December, marking its second monthly growth in 2023 and bringing a year-over-year rise to 78,000, or 4.2%. Meanwhile, the healthcare and social assistance sector experienced a modest rise of 16,000 jobs after a period of stagnation, contributing to a year-over-year growth of 124,000, or 4.8%.
The professional, scientific, and technical services sector added 46,000 employees in December, marking its second monthly growth in 2023 and bringing a year-over-year rise to 78,000, or 4.2%.
Challenges Are Opportunities to Outperform Your Competitors
We are in a challenging time to hire and retain staff. However, this can be good news for companies that can rise to the challenge. When most companies are struggling, opportunities arise for the organizations that can be flexible and creative in their efforts to attract talent.
What Is Your Top Priority?
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Or, explore how we can help employers solve for some of the most common priorities we encounter below.
Attracting Quality Candidates
48% of employers say that failure to find the right workers is the biggest risk to hitting their growth targets7, and 52% of employed workers are NOT actively seeking new opportunities.1
Minimizing Time-to-Hire
Job seekers say that a slow hiring process is the top reason they lose interest in a potential employer leading to increased ghosting and the loss of an employer’s preferred candidate.2
Improving Engagement/Retention
Four in five Canadian employers are worried about their ability to replace employees who leave in the current competitive labour market.18
Optimizing Costs
Labour is often one of the biggest costs of doing business and labour expense is up 4.5% year over year.3
Better Agency Partnerships and Customer Service
Customers report 3 times faster hiring and better results when working with AppleOne.8