Canadians Face The Worst Job Market In 7 Years As Job Vacancies Plunge

Canadian workers might want to hang onto that job extra tight—at least for the next few months. Statistics Canada (Stat Can) data shows job vacancies plunged lower in December. Over recent months, employers have been looking to fill fewer roles against a backdrop of rising unemployment and unprecedented labor force growth. Consequently, the job vacancy rate has dipped to the lowest level since 2017, leaving workers with the worst job prospects in the past 7 years. 

Canadian Job Vacancies Plunged 13% Lower

Canada saw a sharp reduction in the number of jobs available last month. The agency reported a 13.3% (-67.2k jobs) decline, with employers looking to fill just 439.6k jobs in December. This represents a 17.8% (-94.9k) decline from last year. Canadians haven’t seen fewer jobs available in more than six years.

Falling job vacancies means one of two things, depending on whether the economy is improving or eroding. In a hot job market fewer vacancies mean employers can’t fill the jobs fast enough, and wages need to rise to compete for labor. In a cooling economy with rising unemployment it means more competition for the existing jobs and wages may fall. That’s why it’s important to look at the number of payrolls or jobs filled to determine what’s happening.

Unfortunately, payroll data confirms a negative trend. The number of payroll employees fell 0.6% (-111.6k) to 17.4 million people. Over the past year it managed to make a minor climb of 0.8% but that is a quarter of the rate of population growth. 

Canadians Face The Worst Job Prospects In 7 Years

The Canadian job vacancy rate, which shows the number of jobs as a share of total labor. No data available from March 2020 to September 2020.

Source: Statistics Canada; Better Dwelling. 

Available jobs and a rapidly expanding workforce means a job vacancy rate is plunging. The job vacancy rate fell 0.3 points to just 2.5% in December. This represents a 0.5 point decline from last year, and the lowest rate since February 2017. That’s nearly a third of the most recent unemployment rate. Even during the pandemic, a person’s prospect of finding a job was much higher in Canada.

Canada’s job market has shifted dramatically over just a couple of years. A little over two years ago, the share of jobs was higher than the unemployment rate, creating upward pressure on wages as employers competed for labor. Now those seeking work are facing a labor market where there’s just 1 job available for every 3 workers looking. Anyone else feel that wind on their head? 

6 Comments

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  • Reply
    Paul Hickey, Peterborough 2 weeks ago

    Increase immigration to fix this.
    Easy fix, more people means more jobs and it will also support the economy as well.
    More people will support the most important sector in Canada which is real estate.

  • Reply
    Mark Bayly 2 weeks ago

    Massive immigration levels and massive debts are the legacy of the liberals government. Of course this means the economy gets clobbered If the socialists get re elected won’t be long before many people will be flocking to the USA.

  • Reply
    Glenn Persad 2 weeks ago

    300,000 more bogus international students will fix this!

  • Reply
    Mark Bayly 1 week ago

    People in Canada aren’t too swift Multi millions of immigrants storming the country every year Encouraged by the liberals of course and now no jobs Don’t have to be a genius here A pretty simple solution.

  • Reply
    Roddy Piper 5 days ago

    Most jobs for newly minted degree holders and most professionals are fake listings designed to give HR reps work. HR reps are a drain to society.

  • Reply
    peter 4 days ago

    what about the people that gave up and left? There is no tracking system for persons that leave ,most immigrants have family and homes and jobs for when they return to their homeland . Why stay here for minimum wage with unaffordable housing, groceries, and transportation? The Canadian dream ?! The BIG LIE that got them here in the first place , it won’t improve , nothing on the horizon that can bail out “write a cheque Trudeau ” the debt accumulated doubled to a trillion dollars under him , never mind who’s immigrating , find out who’s leaving and why…..

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