Canada sees rise in average hourly wages as job vacancies remain high

Statistics Canada’s job vacancy report for the third quarter (Q3) of 2022 reflects the trend seen throughout the year. Canada is facing a labor shortage as employers seek to fill one million (959,600) job vacancies.

A job is defined as vacant if:

  • A specific condition exists;
  • Work can start within 30 days; And
  • The employer is actively seeking employees from outside the organization to fill the position.

Although down 3.3% from the record-high number of vacancies (993,200) seen at the beginning of the year, the need for labor remains high. In the third quarter of 2022, the vacancy per job in Canada was 1.1 persons.

Average wages rise as employers seek to attract more workers

Faced with a tight labor market, and increased difficulty in recruiting, many employers have tried to increase the wages of those offering vacant positions.

Average hourly wages offered increased 7.5% to $24.20 an hour compared to the same quarter a year earlier.

Some in-demand occupation categories experienced increases in salaries offered even higher than the national average, including:

In addition, the average hourly wage for all workers increased by 5.3% during the same period.

Which sectors have the highest job vacancies in Canada?

Most notably, job vacancies in Canada’s healthcare and social assistance sectors have reached a new record high. More than 150,100 positions were not filled in the third quarter of 2022.

The demand for more healthcare workers has been persistent since the start of the COVID-19 pandemic; Immigration Refugees and Citizenship Canada (IRCC) has responded by removing barriers to permanent residency for physicians and investing millions in streamlining the accreditation of foreign-educated health professionals – as Canada seeks to address this historic labor shortage Is.

Other industries that saw a notable number of vacancies include:

Which province has the most jobs?

Although job vacancies remain high across Canada, some provinces saw a greater increase in the number of open positions in the third quarter than others.

Both Manitoba and Saskatchewan saw job vacancies increase in the third quarter of 10.7% and 7.5%, respectively. A substantial percentage increase from quarter to quarter, again indicating the need for labor.

In addition, Quebec, Ontario, and British Columbia all saw a decrease in the number of job vacancies compared to the second quarter of 2022. Despite this decrease, job vacancies remain high across Canada:

  • British Columbia: 155,400 vacancies;
  • Manitoba: 32,400 vacancies;
  • Ontario: 364,000 vacancies;
  • Quebec: 232,400 vacancies;
  • Saskatchewan: 24,300 vacancies;
  • Alberta: 103,380 vacancies*;
  • New Brunswick: 16,430 vacancies*;
  • Newfoundland and Labrador: 8,185 vacancies*;
  • North Western Region: 1,820 vacancies*;
  • Nova Scotia: 22,960 vacancies*;
  • Nunavut: 405 vacancies*; And
  • Prince Edward Island: 4,090 vacancies*;
  • Yukon: 1,720 vacancies.

*Not seasonally adjusted figures.

British Columbia and Quebec also continued to have the highest job vacancy rates (the ratio of vacant positions to total labor demand (vacant and occupied positions)) at 6.2% and 5.8%, respectively.

a look ahead

As Canada looks to address the labor shortage, immigration has become a major concern for the government. In 2023, the Express Entry system of programs is likely to see changes to a targeted draw for in-demand occupations in Canada.

In light of these changes, statistics such as job vacancies within a sector can provide some insight into which occupations IRCC is likely to target for ITAs in 2023.

Additionally, Canada is already taking measures to maximize its workforce within the country, providing Open Work Permits (OPWs) to families of LMIA-based work permit holders, and international students until December 31, 2023. Can reduce the number of working hours.

Apart from the above data, these policy changes are indicating a favorable recruitment environment in 2023.

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