GG News Bureau
Toronto, 9th Sept. Canada is experiencing a growing disparity between the influx of newcomers and available job opportunities, according to recent data from Statistics Canada.
In August, the working-age population in Canada increased by 96,400, driven by the country’s rapid population growth, which remains among the highest globally. Despite this, the labor force grew by 82,000, but net employment only rose by 22,100, reflecting a significant slowdown in job creation.
Over the past three months, Canada’s economy has created only one new job for every six new entrants to the labor force, marking the lowest job creation rate in over a year. This is a stark contrast to earlier in the year when job growth outpaced the increase in the number of job seekers.
The trend shows a rising number of newcomers, many of whom are students, are not actively seeking employment. The number of people aged 15 and over surged by 1.1 million over the past year, with only half actively searching for work and just 54% of them successfully finding jobs.
Historically, in the two decades before the pandemic, Canada added between 200,000 and 500,000 people annually to its working-age population, with two-thirds of them seeking work and nearly all finding jobs. However, the current job market has cooled significantly, with job postings on Indeed falling by 23% in August compared to the previous year. Less current data from Statistics Canada indicates a similar decline in job openings.
The mismatch between the rapid growth in the working-age population and slower job creation rates is contributing to the challenging employment landscape for newcomers in Canada.
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