Canada’s unemployment rate has fallen below its pre-pandemic level, creating a labor-friendly market where job openings abound but labor is hard to find.
Posted at 2:51 p.m.
The unemployment rate fell to 5.5% in February, its lowest level since 5.7% recorded in February 2020, just before the start of the COVID-19 pandemic, Statistics Canada said on Friday.
The booming labor market is driving up wages and creating a hiring shortage for businesses.
Here’s what that means for job seekers and recruiters.
How does the low unemployment rate affect the labor market?
“The job market has been really, really hot, and now you’re just adding record unemployment to it,” said Travis O’Rourke, president of recruiting firm Hays Canada.
“Now it’s hot. If you’re thinking about getting a promotion or asking for a raise, now is a good time. »
What does this mean for job seekers?
Low unemployment gives workers more options and more power to negotiate wages and benefits.
“Bargaining power is shifting in favor of workers at the expense of employers,” said Avery Shenfeld, chief economist at World Markets.
“If you are a Canadian looking for a job, there is one for you. »
What does this mean for recruiters?
Companies looking to hire may need to raise wages and improve benefits to attract workers.
“Any time unemployment is this low, it’s a candidate market,” O’Rourke said. “Employers still need to hire and the pool from which they can fish has shrunk considerably. »
Meanwhile, other candidates might be looking to upgrade their current job, meaning they would only be willing to change for higher pay or better benefits, he added.
“People are running left and right to get more money,” O’Rourke said. “We certainly see inflationary pressure on wages. »
Is it a question of money?
“The biggest motivation for someone to take a job tends to be money,” O’Rourke said. “However, all the other factors together are worth more than the money. »
His advice to companies looking to hire new staff is to focus on the other benefits.
“Don’t get into a money fight,” O’Rourke advised. “Focus on values, focus on flexibility, focus on your corporate culture. »