Posted on June 11, 2022 at 8:00 AM EDT
Canada’s unemployment rate hit a new record low of 5.1%, the lowest point since comparable data were available in 1976.
Statistics Canada reported in its most recent labor force survey that the workforce gained 39,800 jobs in May, mostly full-time. More than 135,000 people found full-time employment last month. Earnings were led by working women of all age groups.
“As we begin the ritual of filling yards and heading down the road for the overdue holidays, employers continue to look for workers to meet growing demand,” TD Bank economist James Orlando said in a comment. “This has job vacancy rates at record levels, making it clear that the Canadian economy is operating beyond full employment.”
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According to the results of the Statistics Canada Vacancies and Wages Survey in March, the proportion of unemployed and job vacancies reached an all-time low of 1.2, highlighting labor supply pressures in the United States. which are facing employers looking to attract and retain employees. Simply put, Canadian employers can’t find enough people to work, a problem that could be here to stay.
“As the population ages, the number of retirees leaving the workforce in the coming years will outnumber new workers,” writes Conference Board of Canada economist Sean Adams. “The consequent fall in participation rates will keep unemployment rates low even as the Canadian economy achieves limited employment growth. This is good news for jobseekers, but it could make it increasingly difficult. more companies find staff. In other words, the current labor shortage could only get worse. “
Although a potential source of labor supply are those who do not actively participate in the workforce but declare that they want to work. In May, there were 409,000 of these potential workers. However, the number of potential workers is below the more than 1 million vacancies reported in the vacancy survey.
Canada will need to continue to host immigrants to help meet these labor demands. In 2022, Canada will admit 431,645 new permanent residents, a new record. In the first quarter of 2022 alone, Canada has reached nearly 114,000 new permanent residents and is on track to reach that goal.
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