The word “recession” is creeping back into news headlines worldwide in the face of record inflation and economic upheaval from the COVID-19 pandemic. Here’s what Ontario businesses need to know.
What is a “Recession”?
The official definition of a “recession” is a period of two consecutive quarters of decline in a country’s inflation-adjusted gross domestic product (GDP).
In other words, a temporary slowdown won’t do it – a recession includes decline for at least six months. A recession also can’t be triggered by declines or losses in one industry – it involves a slowdown across all sectors.
Are We Currently In a Recession?
By the official definition, Canada’s economy is currently facing the start of a recession.
Yet not all recessions are created equal. As Canadian businesses know, even the current economic climate doesn’t rival the hardship of the 2008 recession.
Also, the current recession isn’t as widespread as its 2008 predecessor. While Canada’s GDP growth currently meets the definition of a recession, GDP behavior in other countries, including the United States, does not.
How Will an Economic Downturn Affect Our Staffing?
Despite official definitions, staffing professionals remain optimistic about their ability to recruit top talent for their clients.
Staffing firms currently have three things going for them when it comes to helping their clients:
- Unemployment remains at record lows. Record low unemployment means that businesses continue to put skilled people to work. Even if layoffs begin to rise, these professionals have current experience and are ready to take on new roles.
- Businesses are still running successfully. Many businesses continue to meet their goals and obligations even though the GDP has declined slightly. As long as businesses can continue to achieve their core goals, even a two-quarter GDP downturn may have little impact on the economy as a whole.
- People want to work. Workers are still expending energy pent up during the pandemic. They’re not pessimistic about the economy. Instead, they’re looking for new challenges – and they’re turning to recruiters for help.
Contact Employment Professionals Canada Today
It’s not time to panic about an economic downturn – but it’s wise to prepare. At Employment Professionals Canada, we help our clients address economic changes with strategic staffing plans and responsive connections to top talent. To learn more, contact us today.