[Canada] Job vacancies sharply fall as excess labour rises

In Canada, the once-tight labour market is beginning to loosen. New data has revealed that job vacancies declined further in Q3 2023, Better Dwelling reports.

However, news of the drop isn’t entirely positive. While it is good that roles are being filled, job creation is failing to keep up with population growth. 

According to the data from Statistics Canada (Stat Can), the country is adding approximately 2 workers for every job filled. This will swiftly alter a tight labour market to one with excess labour in a short period. 

Better Dwelling says unemployment can be expected to rise and wage growth to fall if this trend persists. 

Canada’s job market reportedly saw a significant drop in opportunities with fewer job openings advertised. Vacant roles fell by 9 per cent to 706.1k in Q3 2023, representing 254k fewer openings than last year. This marks the fifth consecutive quarter of decline since the peak in Q2 2022. 

Canadian job vacancies drop

Unfilled roles are reportedly becoming more widespread, with 26 of 69 economic regions declining. The biggest drop was in Ontario; representing 42 per cent of the decline. The majority of regions didn’t see a drop but the largest and most populous did. 

The decrease in job vacancies is not uniformly spread. Of Canada’s 69 economic regions, Stat Can discovered a decline in 26 of them. Ontario led lower, accounting for 42 per cent of the overall drop. Most regions avoided the erosion, however, those that were hit tended to be the largest. 

Vacant roles concentrated in low-wage industries

The vacancy rate - the share of available roles as a share of total labour demand - reportedly dropped 0.4 points to 3.9 per cent in Q3 2023. It is now at the lowest level since Q1 2021 after falling for five consecutive quarters. The distribution of vacancies also yields further insights. 

Canada’s vacant jobs are significantly concentrated in sales and services. Over 1 in 4 (29.2 per cent) of all vacancies were in this area and 47.5 per cent were in a low-wage role. The role, “counter attendants, kitchen helpers, and related occupations” offered $16.50/hour on average. 

Population growth

The good news about the decline of vacant roles is that the majority of the jobs were reportedly absorbed. Payroll employment rose by 0.6 per cent (+117.6k payrolled employees) a rate significantly higher than the decline in vacancies, suggesting most were likely absorbed instead of scrapped. 

In addition, it marked the 10th consecutive quarter for rising payrolls, meaning Canada’s employment is on the rise.  

The bad news is that the country’s working-age population added twice as many people as the economy added jobs. Better Dwelling has previously explored how this trend is driving a higher unemployment rate. 

Canada’s labour market is reportedly at a critical juncture. Rapid job creation isn’t keeping up with explosive population growth that is adding roughly 2 workers per job. Leaving the country heading towards a path of rising unemployment and excess labour.

Source: Better Dwelling

(Links via original reporting)

In Canada, the once-tight labour market is beginning to loosen. New data has revealed that job vacancies declined further in Q3 2023, Better Dwelling reports.

However, news of the drop isn’t entirely positive. While it is good that roles are being filled, job creation is failing to keep up with population growth. 

According to the data from Statistics Canada (Stat Can), the country is adding approximately 2 workers for every job filled. This will swiftly alter a tight labour market to one with excess labour in a short period. 

Better Dwelling says unemployment can be expected to rise and wage growth to fall if this trend persists. 

Canada’s job market reportedly saw a significant drop in opportunities with fewer job openings advertised. Vacant roles fell by 9 per cent to 706.1k in Q3 2023, representing 254k fewer openings than last year. This marks the fifth consecutive quarter of decline since the peak in Q2 2022. 

Canadian job vacancies drop

Unfilled roles are reportedly becoming more widespread, with 26 of 69 economic regions declining. The biggest drop was in Ontario; representing 42 per cent of the decline. The majority of regions didn’t see a drop but the largest and most populous did. 

The decrease in job vacancies is not uniformly spread. Of Canada’s 69 economic regions, Stat Can discovered a decline in 26 of them. Ontario led lower, accounting for 42 per cent of the overall drop. Most regions avoided the erosion, however, those that were hit tended to be the largest. 

Vacant roles concentrated in low-wage industries

The vacancy rate - the share of available roles as a share of total labour demand - reportedly dropped 0.4 points to 3.9 per cent in Q3 2023. It is now at the lowest level since Q1 2021 after falling for five consecutive quarters. The distribution of vacancies also yields further insights. 

Canada’s vacant jobs are significantly concentrated in sales and services. Over 1 in 4 (29.2 per cent) of all vacancies were in this area and 47.5 per cent were in a low-wage role. The role, “counter attendants, kitchen helpers, and related occupations” offered $16.50/hour on average. 

Population growth

The good news about the decline of vacant roles is that the majority of the jobs were reportedly absorbed. Payroll employment rose by 0.6 per cent (+117.6k payrolled employees) a rate significantly higher than the decline in vacancies, suggesting most were likely absorbed instead of scrapped. 

In addition, it marked the 10th consecutive quarter for rising payrolls, meaning Canada’s employment is on the rise.  

The bad news is that the country’s working-age population added twice as many people as the economy added jobs. Better Dwelling has previously explored how this trend is driving a higher unemployment rate. 

Canada’s labour market is reportedly at a critical juncture. Rapid job creation isn’t keeping up with explosive population growth that is adding roughly 2 workers per job. Leaving the country heading towards a path of rising unemployment and excess labour.

Source: Better Dwelling

(Links via original reporting)