Hot Canadian Economy, Low Unemployment Rates Driving Salaries Higher

Canada is experiencing an economic upswing, partially fueled by Juneís unemployment rate of 6.7% which matched a 30-year low in Canadaís employment market. During the same month, Quebec lead Canada with the lowest provincial unemployment rate, particularly in the manufacturing sector.



With manufacturers generating products at or near production capacity, many are experiencing record growth and expanding their operations. This in turn is leading companies to search for new employees.

On the other end of this expansion, many companies lack the personnel to do keep up with the pace of development. When looking for new employees, they are being stifled by a lack of skilled workers. In many cases, the sudden growth over the last few months has left companies without sufficiently trained staff.

Companies in the manufacturing sector are currently looking to hire for positions at multiple levels to try and keep up with their growth. Jobs involving administrative support, distribution, cost accountants, and logistics coordinators, for instance, are all becoming increasingly difficult to fill as demand for these placements continues to rise.

In order to fill the void, numerous companies are increasing their incentives for new hires and it appears that many skilled workers are taking advantage of the market. ìPeople are holding out and waiting for better jobs,î says David Inzlicht, CEO of Proforce Personnel Inc., one of Montrealís largest job placement agencies (http://www.proforce.ca). ìSkilled workers in particular are seeing that there is an increased demand for their specialties and many companies are responding by offering higher salaries and better benefits.î

Inzlicht also believes that many job seekers are taking their time to find a new position which is driving salaries up. In fact, a large portion of job seekers are not actively looking for a new position. With a positive outlook, they are not desperate in their searches for new jobs. Many have even abandoned the use of classified ads, choosing instead to rely on professional job placement agencies. Proforce Personnel Inc. has witnessed an increase in both job seekers submitting their resumes and companies looking to hire new staff members.

The Bank of Canada forecasts continued growth of the Canadian economy well into next year. This could be used as a point of negotiation as people search for better positions.