Exodus of Young Workers
Last month, the youth jobless rate hit 14.7%, a level it hasn’t seen since October 2010. While February saw the overall jobless rate fall to 7.4%, this was largely due to the fact that fewer people are now looking for work and many have given up on the job search. The primary reasons cited for the lack of jobs for young workers is the fact that older workers are staying on the job longer and experienced workers are now competing with young people for the few open jobs. Francis Fong, an economist at Toronto-Dominion Bank, indicates that this will have long-term economic consequences, including lower consumer spending, heavy debt loads, and delayed home purchases.
The Globe and Mail – March 9, 2012
Workforce Woes Hinder Manufacturing
Despite the rapid decline from 2005 through 2009, manufacturing saw a steady comeback in 2011 with $49.9 billion in sales in December. However, this much-needed growth is being hindered by one main issue – a labour shortage. Due to an aging workforce and a general lack of skills in the majority of workers, provinces are already reporting problems keeping their production in step with demand. Saskatchewan builders and developers are struggling with meeting the demand for new construction, and Alberta’s natural resources industries can’t attract adequate labour, despite generous compensation packages. The situation is so bad that Alberta’s premier has begun recruiting prospective workers from the U.S.
Financial Post – March 2, 2012
Stricter Laws for Staffing Companies
Alberta is extending its laws for employment agencies in order to provide more protection for workers. Currently, the Employment Agency Business Licensing Regulation prohibits agencies from charging the job seekers a fee and requires agencies to be licensed. The new regulations, which go into effect on Sept. 1, make it illegal to pressure workers to lie to government officials, to intimidate job seekers, and to require workers to provide a performance bond. Violators would face a range of penalties, from suspension of their license to a maximum fine of $100,000 and two years in jail. However, the vice president of the Association of Canadian Search, Employment, and Staffing Services, Randy Upright, said concerning the new law, “This is a positive step forward for job seekers and the reputable businesses that want to help them find meaningful work.”
HR Reporter – March 9, 2012
West Fights for Extended Immigration Power
Due to a growing skills and labour shortage in the West, several premiers are fighting to gain more control over immigration. British Columbia, Alberta, and Saskatchewan are growing steadily frustrated with their inability to bring in new workers due to Ottawa’s backlog of immigration applications. B.C. Premier Christy Clark, who is leading the group of Western provinces, predicts that her province’s economy will grow by one million jobs over the next decade, and a third of those will need to be filled by immigrant workers. “We need to have a national discussion about what further tools provinces need to grow the national economy,” Clark said. “We need to devolve immigration to provincial governments.”
The Globe and Mail – March 11, 2012
Bank Cautiously Optimistic About Economy
The Bank of Canada’s outlook on the Canadian and global economies has turned more positive this month. While this could indicate the interest rates might be raised in the future, there is no plan to make such a move any time soon. According to a report from the bank, while the Canadian outlook is improved and there is less global economic uncertainty, there are still some concerns. The low interest rates have led to an increase in household debt levels as Canadians have taken on too much mortgage debt, which in turn could lead to a housing bubble.
Reuters – March 8, 2012
[Back to Top]
February 2012
While employment in February remained unchanged from last month, it was up by 121,000 over February 2011. The unemployment rate dropped by 0.2% to 7.4% as fewer people searched for jobs. There was little change across the provinces, with only New Brunswick showing a decline. View the most recent employment report from Statistics Canada.
Major Industry Employment:
- Construction: + 14,000
- Manufacturing: + 6,800
- Trade: - 37,400
- Transportation & Warehousing: - 21,900
- Finance, Insurance, Real Estate & Leasing: + 41,200
- Professional, Science & Technical Services: - 4,300
- Business, Building & Support Services: + 15,800
- Education Services: + 16,800
- Healthcare & Social Assistance: - 21,700
- Information, Culture & Recreation: + 5,100
- Accommodation & Food Services: - 1,600
- Public Administration: - 14,700
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2012.