Canada Hits Record 815,800 Job Vacancies as Service Sector Rebounds

Maple News reports that Canada saw a dramatic increase in job openings in June, reaching a record 815,800 vacant positions across the country. This surge represents a 22% jump from May and marks the highest number of job vacancies since Statistics Canada began collecting such data in October 2020.

The sharp rise was primarily driven by the accommodation and food services sector, which posted 129,100 job openings. This sector surpassed even healthcare and social assistance, which had previously led in job vacancies. The third most affected industry was retail trade, highlighting a broader rebound in Canada’s service-oriented industries.

As COVID-19 restrictions began to ease and restaurants reopened for outdoor dining in late May, employers scrambled to hire staff. This led accommodation and food services to not only dominate in total openings but also to post the highest job vacancy rate of over 12%. Nationally, Canada’s overall job vacancy rate rose to 5%.

Provincial data showed that British Columbia and Quebec held the highest vacancy rates, reflecting strong labour demand in those regions. In contrast, Manitoba and Nova Scotia reported the lowest rates, highlighting regional differences in economic recovery.

Labour shortages are expected to persist. A recent economic analysis suggests that many workers who delayed job changes or retirement during the uncertainty of 2020 may now be exiting the workforce. In addition, a significant segment of service-sector workers left their jobs during long pandemic closures, creating lasting gaps.

As a result, employers are struggling to fill roles, which could lead to reduced business operations and service availability. According to economist Carrie Freestone, the tight labour market is giving workers more leverage in wage negotiations. This shift could drive wage inflation and, ultimately, higher consumer prices.

These ongoing labour shortages underscore the vital role that immigration and foreign talent can play in bolstering Canada’s workforce. As the country continues to reopen and employers seek to stabilize operations, targeted immigration policies may become increasingly central to meeting economic demands.

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