Employment growth looks bright

A rebound in economic growth in the second quarter and expectations for solid growth bode well for employment prospects, according to BMO Economics.

“Service sector job growth has been much stronger than manufacturing sector job growth in the past year,” says Robert Kavcic, senior economist with BMO Capital Markets. “Looking ahead, we expect manufacturing and export-related industries to pick up on the back of stronger U.S. demand and the lagged impact of the weaker loonie.”

He notes that service sector employment should remain sturdy, especially in areas such as professional and business services, healthcare and education, while retail and construction employment could lose some momentum.

Fifty-five percent of large businesses with 50 employees or more plan to expand the size of their workforce, while 24% of small organizations with fewer than 10 employees indicate they have plans to hire this calendar year.

Business owners in Alberta are the most likely to increase the size of their workforce, followed by business owners in Atlantic Canada (35% and 32%, respectively).

And business owners in the Prairies are most likely to keep the size of their workforce the same (70%), followed by those in British Columbia (66%).

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