Statistic Canada’s Labour Market Survey results indicate that Canada’s job market is still struggling for growth, but according to studies by Randstad Canada and Right Management, there is a glimmer of hope.
The latest report by Statistics Canada indicated that the economy shed 2,800 jobs in February and that the country’s unemployment rate dropped by 0.2%, to 7.4%, due to the declining number of Canadians looking for work.
Regarding specific industries, the biggest losses last month were seen in the wholesale trade and retail sectors, with losses of approximately 37,000 workers. Transportation and warehousing, as well as healthcare and social assistance followed, with both categories losing approximately 22,000 jobs.
However, Jan Hein Bax, president of Randstad Canada, has seen a steady increase in contract demand over the last few months.
“There was a slight 2% increase from January to February of this year, but a moderate increase of 31% was seen in January alone, compared to December 2011′s numbers,” he says.
And while the economic numbers may appear grim, Bax has stressed that opportunities are still available.
“As we’ve seen in the past during difficult economic times, businesses rely more heavily on contract or temporary hiring to adjust to market uncertainties.” he says, “[These opportunities] still provide some good options for job seekers within certain industries and specializations. ”
Randstad’s survey results also highlight some areas where employment rose. Finance, insurance, real estate and leasing added 41,000 new jobs to the economy. Modest growth was also seen in educational services, business, and building and other support services, as well as natural resources, construction and manufacturing.
A ray of optimism was also seen in Right Management’s survey, which found that one in three companies predict renewed growth for 2012. Of those surveyed, 34% said they expect this to be a year of recovery, marked by increased hiring and new talent development initiatives.
However, the majority of employers surveyed were still pessimistic. Almost half (47%) said they expect 2012 to be similar to 2011, with sluggish hiring and postponed HR initiatives, and 18% predicted it will be year of stagnation with more cutbacks and restructurings.
Despite the gloomy outlook many hold, Bram Lowsky, group executive vice-president of Americas for Right Management, says the survey results indicate positive movement in Canada’s labour market.
“Beneath the caution, organizations are becoming more positive about the economy and their own businesses,” said Lowsky. “There have been so many ‘false positives’ in the past two years that most executives temper their enthusiasm until they see consistent, strong data. But the numbers from our study suggest a clear upward trend, especially with respect to hiring.”