Strong Hiring Boosts Canadian Payroll Employment

The Canadian labor market continued to show positive signs of growth in November 2022 with a 7,100 increase in payroll employment across 10 out of 15 sectors. This increase is a good indication of a strong hiring climate and a return to pre-COVID economic output in Canada. Many industries also saw a decrease in job vacancies as employers were more effectively able to hire to fill openings in the face of looming labor shortages.

The sectors that 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)
• Construction (+4,300 positions)

The increase in payroll employment is a good indication that companies are hiring and have the necessity for more workers, which is a gauge of economic growth as more people can contribute to the economy through increased employment. This information may be pertinent for newcomers to understand which sectors are experiencing surges in hiring in Canada.

Ongoing Job Vacancies

Despite the strong growth in payroll employment in November 2022, Canada still faced a high number of job vacancies across multiple sectors. The healthcare and social assistance sector continues to be a persistent problem for Canada as the high number of vacancies indicates a need for more healthcare workers. Despite a decrease in vacancies by 19,300 jobs, the total number of job vacancies in the space remains elevated, up nearly 45% from March 2020. The Canadian government has taken steps to address the labor shortage in the healthcare sector, including targeted accreditation for foreign-educated healthcare professionals and reducing immigration barriers to physicians.

The construction sector is another area of persistent job vacancies, despite making strong gains in payroll employment in November. Job vacancies remain elevated in this sector, which may indicate both an increase in business output and a persistent need for workers. Policy changes, such as Canada’s recent commitment to helping out-of-status construction workers, highlight the importance of such labour to the country’s economy.

The professional, scientific, and technical services sector also experienced good gains in payroll employment but still suffers from an increased number of job vacancies. This sector has experienced positive employment gains since October 2020 and the high number of job vacancies is a strong indicator of enduring demand for workers in the space within Canada.

Immigration will play a crucial role in addressing the persistent labor shortages as Canadian demographics cannot support filling current job vacancies. The Minister of Immigration has the power to create groups in the federal Express Entry pool and issue invitations to apply to individuals who meet specific criteria, such as occupation, education, or language ability. Professions with persistent job vacancies are likely to be targeted in these draws.

Conclusion

The increase in payroll employment and the decrease in job vacancies in November 2022 indicate a strong hiring climate in Canada and a return to pre-pandemic economic output. While persistent job vacancies remain a challenge in various sectors, immigration will play a crucial role in addressing labor shortages and supporting Canada's economic and social needs. It is important for newcomers to understand which sectors are experiencing growth and demand for workers in order to make informed decisions about their career paths in Canada. Get in touch with our visa experts who are certified on 8595338595 or mail us at web@abhinav.com