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Canada Has Over 1 Million Job Vacancies for New Workers

By Casey August 24, 2022 (Updated August 24, 2022) 3 min. read
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The May 2022 edition of Statistics Canada’s monthly payroll employment, wages, hours, and job vacancy report has been made public. The research indicates that for the first time since May 2021, fewer employees in Canada are receiving income or perks from their company.

According to the report, which was created using information from the Survey of Employment, Payrolls, and Hours, 26,000 positions were no longer being paid for as of last May. Ontario and Manitoba, which reported 30,000 and 2,500 job openings, respectively, experienced the largest drops. The only jurisdiction to record an increase in payroll workers was British Columbia.

Payroll Workforce Declines in the Majority of Sectors

The services-producing sector, which reported a loss of almost 17,000 jobs on payroll in industries like educational services, healthcare, and social support, experienced some of the biggest declines.

Additionally, there was a large drop in employment in the construction industry as a whole. The number of jobs decreased by almost 17,500 in May, the first drop since July 2021. Nearly two-thirds of the decline in employment in the construction industry was attributable to the loss of the majority of positions there. This loss is mostly attributable to strikes that occurred across the province and that resulted in protracted delays on a number of projects.

Employment Rate in the Retail Sector is Still Higher than in 2021

Ontario also saw the biggest drop in retail trade jobs across the nation. The number of payroll employees in the retail trade profession has fallen for the second consecutive month. The overall rate of employment in the retail trade is still 6% greater now than it was in May 2021, though. Quebec, New Brunswick, British Columbia, and Newfoundland and Labrador all reported growth in employment in the retail trade, in contrast to Ontario.

The professional, scientific, and technological services industry was the only one to experience growth in each province, adding over 10,000 jobs, mostly in high-tech fields like computer systems design and related services.

What Are the Average Weekly Earnings?

Despite the employment losses, retail commerce saw the largest gain in weekly wages for May, up 9.3% over the same period in 2021. Professional, scientific, and technical service salaries have increased by 8.1%. In contrast, the arts, entertainment, and recreation businesses had a reduction in average weekly wages of 9.7%.

Employees’ average weekly wages have increased 2.5% since the April report. This is probably a result of workers’ changing jobs or higher salaries. The survey discovered that the higher average is not the result of more hours worked, which held steady at 1.5% above pre-covid levels in May.

The Number of Open Positions in the Healthcare Industry is Rising

The unemployment rate in Canada was 5.1% in May, which was a record low (it fell even lower to 4.9% in June). According to the report, there are now 143,000 open positions—or 6.1%—in the health care and social services sectors. In comparison to the vacancy rate in April, which was 5.4% and 20% more than it was in May 2021, this is a significant increase.

In May, there were 161,000 open positions in the lodging and food services sector in both Nova Scotia and Manitoba, which had job vacancy rates of over 10%. Accommodation and food services have had the highest number of vacancies for the thirteenth consecutive month.

Low Unemployment and High Job Vacancies

In Canada, there are more than a million open positions. This is consistent with April data, however, the number of open posts has increased since May 2021 by over 300,000. The Labour Force Survey’s estimate of the low unemployment rate and high job vacancy rate for May 2022 indicates a developing labor shortage in a number of industries and an increased demand for immigration to Canada as the country’s workforce ages and enters retirement. With a target of exceeding 430,000, Canada is currently preparing to welcome its biggest ever a number of permanent residents in 2022. By 2024, the goal will have risen to over 450,000.

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