This text is part of the special Syndicalism booklet
The labor market has experienced disruptions due to the pandemic. The consequences were still felt in 2022, but full employment is there and it will bring its share of challenges in 2023, according to the annual report on the state of the job market in the province published by the Institute of Quebec (IDQ).
The annual report describes a labor market in full transformation, with an increasing average salary, in a context of inflation. For its part, the unemployment rate is at a historically low level, while employers are struggling to recruit.
An exacerbated labor shortage
It comes as no surprise to anyone, Quebec is marked by a labor shortage. Retirements are higher than people entering the labor market. “We are in the post-pandemic world, with a scarcity of labor that we already saw before, but which has been exacerbated”, declares Emna Braham, director general of the IDQ. It is calculated that 83 people enter the job market for every 100 people who retire, which maintains the deficit.
3.9% unemployment
In addition to the labor shortage that was already felt before the pandemic, the unemployment rate is at an all-time low. This indicator is certainly the most widely used to assess the health of the job market. In addition to being particularly low, the unemployment rate recorded in December reached a record 3.8%. Unheard of for almost 50 years that Statistics Canada has been collecting this data. The average unemployment rate for 2022 is 4%.
Fewer workers and more absences
Pandemic-related absences may have subsided, but workers were more absent for health and family reasons in 2022, compared to the years from 2017 to 2019. According to Emna Braham, this phenomenon is partly due to the variants of COVID-19, but not only: “There are more structural effects, such as burnout in certain sectors. It is also for this reason that employers seek to recruit, to compensate for these lost working hours due to absenteeism. The good news is that the likely reduction in absenteeism could alleviate some of the labor shortage.
Productivity
The IDQ report compared certain data with those of other provinces in order to better interpret the indicators. This method brought out an interesting fact. To generate $1 billion in GDP in Quebec, 17% more workers are needed than in Ontario, for example. “Productivity is lower and we rely on low-skilled positions, while Quebecers are more and more educated and qualified,” says the director of the IDQ. She explains this in particular by the structure of the Quebec economy, that is to say the fewer number of hours worked or the use of less widespread technologies. “What we must remember is that yes, we must work on recruiting the workforce, but we must also reduce our demand for labor, and therefore improve our productivity”, sums up she.
To better paid jobs
Yes, Quebeckers are suffering from an increase in the cost of living. But their work is also better paid. Well, not exactly. Quebecers have moved to better paid jobs, there is a transfer between sectors of activity, specifies Emna Braham. Since the pandemic, the lowest paid positions, that is to say below $30 an hour, have had difficulty being filled. This is the case for the restaurant or retail trades: “There are half a million additional jobs at $30 an hour and more in December 2022, compared to December 2021.”
Full employment in 2023
Emna Braham is clear: the tight job market and low unemployment rate will continue this year. The population is aging, lower paid positions remain to be filled. “According to forecasts, even with a slowdown in the economy in 2023, the need for labor is so great that the unemployment rate should remain below 5%, which is still very low. She adds that the labor market has become more fluid and will require a keen eye to analyze its evolution in the coming months.
This special content was produced by the Special Publications team of the Duty, relating to marketing. The drafting of Duty did not take part.