Job vacancies in Canada hit a record high in the second quarter of 2022, with 997,000 open positions, according to data from Statistics Canada.
The number of job vacancies saw a 4.7% increase from the first quarter and a 42.3% jump from the second quarter of last year.
Vacancies in health care and social assistance remained high, with a slight change from the record high of the previous quarter (135,300), but a jump of 28.8% ( or +30,500) on a year-over-year basis (seasonally adjusted). Openings in the accommodations and service sector are up 12.7%, offsetting the decline in the first quarter.
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Vacancies in the professional, scientific and technical services sector meanwhile at 74,600 are up 7.9% from the first quarter, and 79.1% on a year-over-year basis (seasonally adjusted).
This cohort may have been greatly affected by what analysts call The Great Retirement. Earlier Statscan data showed the Canadian workforce shrinking, with a record number of Canadians aged 55-64 reporting that they retired in the last year.
But the rising job vacancy rate, in general, seems to be another impact of inflation, as wages have failed to keep up with rising prices. Data from StatsCan show an average hourly wage increase of 4.1% year-over-year in the second quarter as increases in consumer prices hit 7.5% in the quarter.
But the Bank of Canada is urging employers to not let inflation put too much pressure on wage increases — warning of a “wage-price spiral” that will further push inflation. Higher wages, according to the central bank, will only make their goal of pulling back inflation to the target of 2% all more challenging.
Information for this briefing was found via Statistics Canada, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
