Lower-wage industries in Canada – Disproportionately impacted by the recent softening in labour demand

Lower-wage industries in Canada with more younger workers have been disproportionately impacted by the recent softening in labour demand, while higher-wage sectors have emerged as clear winners in a jobs market redefined by the pandemic.

One silver lining in the Canadian labour market after the pandemic lockdowns was the strong demand for professional, scientific, and technical workers that allowed many well-educated and likely underutilized workers in the hospitality sector to make the jump to higher-paid work.

Hiring in hospitality sectors sharply lagged, because there simply weren’t enough workers available to fill jobs. Surging demand in higher-wage sectors meant fewer workers were available for jobs that paid less.

But, that backdrop has now shifted. Lower wage industries such as accommodation and food services are still underperforming higher wage industries, but not because of a shortage of labour—there’s much softer hiring demand.

Chosen excerpts by Job Market Monitor. Read the whole story @ RBC Royal Bank