The coronavirus (COVID-19) pandemic wreaked havoc on the Canadian job market. Fortunately, recovery from the pandemic is underway for Canadian businesses and job seekers alike.
Ultimately, it may be some time before the market reaches its pre-pandemic levels. To understand why, consider findings from the May 2021 Labour Force Survey from Statistics Canada.
Key findings from the survey included:
- Employment fell by 68,000 (-0.4%) in May.
- The number of self-employed workers was 5% (-144,000) below its pre-pandemic level.
- The number of people working in the goods-producing sector declined by 36,000 (-2%).
The aforementioned findings paint a bleak picture for different areas of the Canadian job market. However, the pandemic is approaching its end. And, as more people get vaccinated and businesses reopen, the job market looks poised to rebound.
When Will the Canadian Job Market Improve?
There are several bright spots in the Labour Force Survey that highlight improvements across the Canadian job market in the year after the pandemic started. These include:
1. The Unemployment Rate Is Declining.
Canada’s unemployment rate was 8.2% in May. Comparatively, this rate was 13.7% in May 2020.
Meanwhile, as many Canadian businesses recover from the pandemic, they are seeking in-house and remote workers. Thus, Canada’s unemployment rate may continue to decline in the weeks and months to come.
2. Transportation and Warehousing Employment Is on the Rise.
In Canada’s transportation and warehousing sectors, employment rose by 22,000 (2.3%) in May. This represented the first employment increase in these segments since December 2020.
Furthermore, the number of people working in the transportation and warehousing sectors came within 4 percentage points of its pre-pandemic level in May 2021. And, transportation and warehouse workers may be in high demand going forward, particularly as companies in these sectors look to return to the pre-pandemic operations.
3. Natural Resources Employment Is Increasing.
Like the transportation and warehousing segments, the natural resources sector is expanding. In fact, natural resources industry employment rose by 6,800 in May. Sector employment also increased throughout fall and winter.
The increase in Canadian natural resources sector employment coincided with a rise in global oil prices over the past few months. These prices may continue to increase, which could further accelerate the demand for workers in the natural resources industry.
What Does the Future Hold for the Canadian Job Market?
Canadian businesses dictate the nation’s job market. As companies attempt to return to “business as usual” following the pandemic, they may look to hire top talent. Over time, these companies can provide job seekers with myriad opportunities to pursue their career goals. This could lead to notable improvements in Canada’s unemployment rate.
Of course, if you want to find top talent in Canada, you may want to consider partnering with a professional staffing agency. With Employment Professionals Canada at your side, you’re well-equipped to attract and retain top talent.
Employment Professionals Canada is a leading professional staffing agency. We can connect your business with top talent at any time. For more information about our professional staffing services, please contact us today.