Despite a cooling economy and rising interest rates, Canadian businesses remain cautiously optimistic about hiring for the remainder of 2024. A new survey by Robert Half indicates that roughly half of companies plan to add new positions in the second half of the year, while another 41% will focus on filling existing vacancies and job growth.
While these figures are largely in line with hiring trends from the first half of the year, the survey also reveals a shift in employer behavior. Companies are becoming more selective and deliberate in their hiring practices, taking longer to fill open roles. This trend is attributed to a combination of factors, including economic uncertainty, a talent shortage, and the need to carefully evaluate the long-term impact of new hires.
The Bank of Canada’ recent Monetary Policy Report echoes this sentiment, highlighting a slowdown in Job Growth and a decline in the job-finding rate for certain segments of the labor market, particularly among young people and recent immigrants.
Skills Shortage of Job Growth and Hiring Challenges
Finding qualified candidates remains a significant challenge for many employers. The Robert Half survey found that 90% of hiring managers reported difficulties in identifying skilled professionals, with a lack of applicants and cultural fit being the primary obstacles. As companies become more selective, the hiring process is becoming increasingly time-consuming.
The combination of economic uncertainty, talent shortages, and evolving hiring practices is creating a more complex job market. While overall job growth is expected to continue, the pace of hiring is likely to moderate in the coming months.
Cautious Optimism in Canadian Job Market
Canadian small businesses are pulling back on hiring plans, according to a new survey from the Canadian Federation of Independent Business (CFIB). Only 13% of businesses plan to increase their headcount in the next three to four months, marking the lowest level since January 2021. This represents a significant decline from the previous year when more than one in five businesses had hiring plans.
Despite weaker hiring intentions, layoffs remain relatively stable. Nearly three-quarters of small firms plan to maintain their current staffing levels, while 15% anticipate reductions.
The Bank of Canada has attributed the recent rise in Canada’s unemployment rate to an influx of new immigrants and young job seekers. While businesses are still hiring, the pace hasn’t kept up with the growing labour force, making it particularly difficult for newcomers and youth to find employment.
The survey highlights a cautious approach among small business owners, as they grapple with economic uncertainty and the ongoing talent shortage.
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