DON MILLS: Labour market goes from weak to saturated

It wasn’t that way back that for too many youthful Atlantic Canadians the one future was happening the street to pursue a profession.

Thankfully, that’s not the case. The job market in Atlantic Canada has by no means been higher. Certainly, over the previous few years Atlantic Canada has gone from an oversupply of labour to an undersupply.

Atlantic Canada has for many years led the nation with the very best charges of unemployment. They’ve been quickly falling and are on the lowest ranges in many years.

There are two main causes for this variation in financial fortunes. One is said to demographics and the opposite to inhabitants development after years of stagnation.

Up till very lately, a lot of the area had a quickly getting older inhabitants that included a child increase technology within the early stage of leaving the workforce. The sheer measurement of that technology meant there have been inadequate replacements amongst these getting into the job market.

At the moment Atlantic Canada has the oldest inhabitants within the nation, though there are early indicators the median age could also be falling in fast-growing markets like Charlottetown, Moncton and Halifax.

Fortunately, the latest census has confirmed that many of the area, except Newfoundland and Labrador, has loved substantial inhabitants development over the previous 5 years. Prince Edward Island has led each inhabitants development and financial development throughout the nation in that point.

New Brunswick and Nova Scotia are approaching the nationwide charge for inhabitants development. That has offered a stimulus to the economic system, creating extra employment alternatives.

Workforce

Over the past 5 years, the variety of full-time jobs in Canada has elevated 6.6 per cent (Might 2021) whereas the workforce has elevated solely by 5 per cent. This helps clarify the tightening job market throughout the nation and the bottom nationwide unemployment charge since 1976 (5.1 per cent in June).

The story is analogous for a lot of Atlantic Canada. P.E.I. has led the area in full-time job development (11.7 per cent) during the last 5 years, in addition to by way of growing the dimensions of its workforce (10.5 per cent). This has largely occurred because of the province’s inhabitants development, resulting in the bottom unemployment charge on the Island ever (6.8 per cent).

Job development is subsequent highest in Nova Scotia (7.3 per cent). Once more, development within the labour market has trailed job development (6.2 per cent)

Nova Scotia has had the second fastest-growing inhabitants within the area during the last 5 years. Unemployment within the province is at present 6.3 per cent.

New Brunswick’s full-time job development has not saved tempo, at solely 2.5 per cent. Even so, labour pressure development was decrease (2.0 per cent). The unemployment charge within the province is 6.8 per cent.

The scenario in Newfoundland and Labrador continues to be tougher. The one province within the nation to see its inhabitants decline within the final census, the variety of full-time jobs within the province grew 2.6 per cent however its labour pressure declined 2.3 per cent. That mixture nonetheless lowered the province’s unemployment charge to 10.3 per cent.

Job market impacts

There are penalties of a tightening job market; maybe crucial to the area is labour prices.

Provide and demand rules are at play. Up to now, Atlantic Canada had an oversupply of labour and undersupply of jobs. This led to decrease wage stress within the area. Now the reverse is the case, with excessive job demand and a declining labour provide.

The wage benefit employers within the area beforehand loved is quickly disappearing as wages and salaries method nationwide ranges for many job classes. This can even result in nationwide costs for the area for many items and companies.

The opposite essential consequence is said not simply to recruitment of staff however to retention. The work surroundings and dealing circumstances are quickly evolving. The demand for extra do business from home is one instance. Therapy of workers is extra essential than ever.

Human useful resource administration methods are more and more essential to the retention of staff, who’ve by no means had extra selection by way of job alternatives, and it has by no means been really easy to depart one job for an additional.

Methods

For Atlantic Canada, by far the most important alternative to extend labour provide is to extend participation within the workforce.

In Canada, about two-thirds of these 15 years or older can be found to work. Except P.E.I. (participation charge of almost 69 per cent), the remainder of the area has decrease charges of participation. Whereas a part of the problem pertains to having the oldest populations within the nation, it doesn’t absolutely clarify a participation charge of solely 60 per cent in Newfoundland, which additionally continues to have the very best unemployment charge within the nation.

Inhabitants development is one other essential alternative to extend labour provide (and job development). P.E.I. has confirmed this premise.

An essential side of inhabitants development is immigration. On the identical time, Canada has for essentially the most half targeted its efforts on expert labour. I might argue the case for extra unskilled immigrant labour, significantly to deal with labour shortages within the agricultural and repair sectors.

As well as, growing participation charges amongst minority teams and the Indigenous is a near-term alternative. I might add that retaining older staff who’re contemplating leaving the office, maybe with extra progressive relationships similar to part-time full-time work, ought to be thought of by employers.

There’s little doubt that rising demand for staff is in all places, in each sector. The competitors for expertise is growing. What’s your group’s technique to recruit and retain staff?

Don Mills is the previous CEO and proprietor of Company Analysis Associates Inc. (now Narrative Analysis), an lively entrepreneur, advocate for change and co-host of the Insights Podcast.