In nearly every Canadian industry and across every sector, a historic labour shortage is hitting companies hard. As of June 2022, businesses posted almost 70% more job openings in Canada than pre-pandemic. But these firms were competing for 13% fewer unemployed workers than were available in February 2020. The impact is severe: more than half of Canadian businesses say labour shortages are limiting their ability to increase production—up from 40% before the pandemic and 30% a decade ago.
The problem is even more pronounced in the United States, where there were nearly two vacant jobs for every unemployed worker in May. A key factor behind the problem is a rapid rebound in economic activity from pandemic lows. Massive stimulus to households over the past few years has also fuelled a surge in demand for goods and services—and the workers that produce them. Wages are moving higher as a result, adding to persistent and rising inflation.
Chosen excerpts by Job Market Monitor. Read the whole story @ Proof Point: Canada’s labour shortages will outlive a recession