Overall Score

5.4 in 2015 5.7
0 2.5 5 7.5 10

Key Finding

In 2016 the overall Index score for Canada declined, suggesting the labour market is experiencing less pressure. This reflected lower wage pressures, with declines recorded in both overall and occupational wage pressure. The Bank of Canada’s Business Outlook Survey shows the incidence of labour shortages remains low.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
5.9
Labour market
participation
5.3
Labour market
flexibility
3.8
Talent
mismatch
6.6
Overall wage
pressure
4.3
Wage pressure in
high-skill industries
6.5
Wage pressure in
high-skill occupations
5.6

COUNTRY OVERVIEW

View from the ground

The Canadian economy is still feeling the effect of the downturn in the oil and gas and commodities markets. This has especially impacted Alberta, with the Fort McMurray wildfires causing further setbacks for the region. Nationally we are seeing positive signs, with GDP expanding at its fastest rate in a year in the first quarter of 2016, and the three biggest provinces – British Columbia, Ontario and Quebec – are all seeing steady growth. This is largely driven by booming construction, a strong banking and financial sector, and the fast growing IT and technology sector. The overall shortage of skilled workers shows no sign of improving, especially as more baby boomers retire every year without enough experienced professionals available to replace them.

Rowan O’Grady, President, Hays Canada

Rowan O’Grady, President, Hays Canada

Country Profile

Real GDP growth was strong in the early part of 2016, supported by consumer spending and net trade.

Business investment remains weak, as energy and commodity companies cut investment spending due to the low level of oil, gas and other commodity prices.

Both monetary and fiscal policy remain accommodating, enhancing the prospects for stronger growth.

Rowan O’Grady, President, Hays Canada

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