Active Stocks
Tue Apr 16 2024 15:59:30
  1. Tata Steel share price
  2. 160.05 -0.53%
  1. Infosys share price
  2. 1,414.75 -3.65%
  1. NTPC share price
  2. 359.40 -0.54%
  1. State Bank Of India share price
  2. 751.90 -0.65%
  1. HDFC Bank share price
  2. 1,509.40 0.97%
Business News/ News / World/  Canada jobs: Will hiring slow down due to the recession?
BackBack

Canada jobs: Will hiring slow down due to the recession?

Canada's economy would slow significantly over the coming months but said it would not be a severe recession.

Canada has nearly a million open jobs and just over a million unemployed peoplePremium
Canada has nearly a million open jobs and just over a million unemployed people

Amid lay-offs by Twitter and Meta, and recession fears, some Canadian employers expressed that they would continue to hold onto their workers even in case the economy slows down as they don't want to get into the hassle of rehiring later on once again. 

Even as the economy began to stall, Canada in October added a net 108,300 jobs. Canada's jobless rate dropped to a record low of 4.9% over the summer and has since edged up to 5.2%. 

"I don't anticipate layoffs at all," said Mark Seymour, CEO of trucking service Kriska Transportation Group in Prescott, Ontario. Up until a few months ago, Kriska's 1,200 employees were too few to keep up with demand, Seymour said.

Now trucking activity, a leading indicator, has fallen off about 5% from earlier this year, Seymour told Reuters.

Seymour said his company hauls for one major car manufacturer who is expecting to be able to boost production again soon. "They've told us to get ready," Seymour said.

Adding to the thought, David King, senior managing director for recruitment agency Robert Half told Reuters that with recession headlines spooking consumers and slowing demand, some companies are looking at scaling back sales functions a bit.

But overall, demand for professionals is strong. "I think the balance of power still remains with the candidate side of the equation," King said.

Canada unlikely to see recession

Governor Tiff Macklem reiterated on Thursday that Canada's economy would slow significantly over the coming months and the jobless rate would rise from historic lows, but said it would not be a severe recession.

"Because the labor market is so hot and we have an exceptionally high number of vacant jobs, there is scope to cool the labor market without causing the kind of large surge in unemployment that we have typically experienced in recessions," he said.

To be sure, some sectors will be hit harder than others. Tech companies like Shopify Inc have already made cuts and Canada's tanking housing market will hit real estate, banking and construction workers.

Canada has nearly a million open jobs and just over a million unemployed people. Most open jobs are in healthcare and high-contact services, along with skilled-trade heavy sectors like construction and manufacturing.

(With inputs from agencies)

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 Nov 2022, 06:35 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App