Canada is still hiring! Q1 2024 outlook

As Canada enters the first quarter of 2024, the latest Manpower Group Employment Outlook Survey sheds light on the evolving dynamics of the job market. Despite a backdrop of employers actively seeking skilled talent, the survey reveals a slowdown in hiring across the nation.

According to the survey, more Canadian employers express intentions to expand their teams in the upcoming quarter, with 41 percent planning to hire. However, this figure represents a decline from the robust hiring expectations recorded in the second and third quarters of 2022. The net employment outlook stands at +25 percent, indicating a positive outlook, albeit tempered. The survey notes that hiring expectations have decreased by two percent from the fourth quarter of 2023 and eight percent from the same period the previous year.

“Canadian employers expect steady, yet moderating, hiring in Q1 2024,” states the Manpower press release, highlighting a nuanced perspective on the current job market. This moderation is reflected across all regions, with hiring expectations subdued compared to the same period last year.

On a global scale, Canada’s net employment outlook of +25 percent positions it just below the global average of +26 percent, with the United States reporting a more optimistic +35 percent outlook.

The employment landscape in Canada is in flux, evident in the rise of the unemployment rate to 5.8 percent in November from a post-pandemic low of 4.9 percent in June 2022. The job market’s dynamics are influenced by factors such as an increased number of people seeking employment and a decrease in job vacancies from over one million in Q2 2022 to just over 800,000 in Q2 of the current year.

While the labor market appears to be adjusting, persistent talent shortages continue to pose challenges for employers. The survey reveals that 80 percent of employers expect difficulties in finding skilled workers, a trend that has been steadily rising over the past decade. This rate surpasses the global average of 75 percent, indicating a pressing need for strategic solutions.

Among the skills in high demand are IT and data, operations and logistics, sales and marketing, engineering, administration, and support. The survey explores into specific sectors, with 77 percent of employers in goods and services reporting challenges in finding staff. In the energy and utilities sector, 80 percent face hiring difficulties, anticipating a net employment outlook of +33 percent. Health care and life sciences emerge as the most stressed sector, with 90 percent of employers struggling to find staff, yet still projecting a net employment outlook of +29 percent.

In this dynamic employment landscape, organizations must navigate challenges with foresight and innovation. Directpath Canada, with its expertise in Global Recruitment, Immigration, and Settlement Services, stands as a strategic partner for companies seeking to overcome talent shortages. As employers grapple with persistent challenges, Directpath Canada remains committed to providing excellent services and contributing to the development of a resilient and skilled workforce in Canada.