Canada’s payroll employment increases, as strong hiring continues
November 2022 saw increases in payroll employment that suggest a lively hiring market.
Wage employment (the number of employees receiving wages or benefits from their employer) increased in 10 of 15 industries in November 2022, a good indication of a strong hiring environment and Canada's return to Economic output before COVID.
As a result, job vacancies have also declined in many industries -- as employers are able to recruit more efficiently to fill vacancies in the face of looming labor shortages. Overall employment rose by 7,100 as gains in the professional technology services, public administration, and finance and insurance sectors were offset by sharp declines in retail trade space.
The total number of job vacancies decreased by 20,700 in November 2022, resulting in a cumulative total of 850,300 job vacancies across Canada. That represents a decline of 151,900 job openings since the record high of 1 million job openings hit in May 2022. This could be interpreted as a sign that economic production of goods and services is continuing to return to pre-pandemic levels.
An increase in employment (more specifically) is a good sign that companies are hiring and needing more workers - a measure of economic growth, as more people contribute to the economy through increased employment make a contribution. In this sense, it may be relevant for newcomers to understand which industries are now seeing increases in wage employment, and which types of businesses are experiencing a surge in hiring in Canada.
The sectors which recorded the biggest gains in payroll employment in November included:
- Professional scientific and technical services (+5,600 positions);
- Public administration (+4,800 positions);
- Finance and insurance (+4,700 positions); and
- Construction (+4,300 positions).
Persistent job vacancies
Despite strong employment growth in November 2022, Canada still faces a large number of job vacancies across several industries.
Health care and social assistance (131,800 job vacancies) – As indicated by the large number of job openings, a long-term problem facing Canada is finding more health care workers. Despite a decrease of 19,300 job vacancies, the total number of vacancies in this field remains high, up almost 45% from March 2020; policy changes adopted by the Canadian government further reflect the demand for workers in this field: Educate healthcare professionals for more streamlined certification and reduce immigration barriers for physicians.
Construction (79,000 job vacancies) – Notably, construction job vacancies persist. Job vacancies in the industry remain high despite strong job growth in November. This may indicate an increase in business output, but it also indicates continued demand for staff in the field. In fact, job vacancies in construction were little changed in November 2021 (73,900), suggesting this is another industry where Canada continues to need workers, especially as the economic recovery continues. Similarly, policy changes such as Canada’s recent pledge to help out-of-status construction workers communicate the importance of this workforce to the country’s economy.
Professional, scientific and technical services (52,000 job vacancies) – Similar to the construction sector, the professional, scientific and technical sector made good progress in wage employment – but the number of job openings still increased. Again, this is indicative of hiring and continued demand for workers in this field within Canada. In fact, since October 2020, employment in the sector has registered positive growth. With so many job openings, it's a strong indicator of continued high demand for these workers in Canada.
Immigration is critical to addressing these labor shortages, as Canada's demographics do not currently support filling current vacancies. With Bill C-19 coming to power in 2022, the Honorable Sean Fraser (as Minister of Immigration) will now be able to create groups in the federal Express Entry pool (possibly based on criteria such as a candidate's occupation, education or language ability) - and An Invitation to Apply (ITA) is issued to these individuals to more directly address Canada's economic and social needs. Occupations with ongoing job vacancies are more likely to be targeted by these draws.
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