Huge upsurge in employment opportunities in Canada
According to Statistics Canada's most recent job vacancy data, the lodging and food services industry is driving job growth. In Canada, there was a surge in job opportunities in the lodging and food services industries in June. According to Statistics Canada's employment vacancy data, when restaurants began reopening in June, there were nearly 129,100 empty positions in lodging and food services. This industry had more job opportunities than health care and social assistance, which had the most vacancies the previous month. The retail commerce industry in Canada finished in the third position.
Job openings in the food service industry increased the number of open job opportunities in Canada. In June, there were 815,800 job vacancies, a 22 percent increase over May. The bulk of these job opportunities were in the service industry.
In addition, the rate of job vacancies in June was the highest since Statistics Canada began collecting data in October 2020. There is a disparity between the number of job openings and the rate of job vacancies. The vacancy rate is the proportion of empty positions in a sector compared to the total number of positions in that sector. The overall vacancy rate in Canada hit 5 percent in June.
The accommodation and food services sector had a more than 12 percent vacancy rate that is the highest vacancy rate of any industry. As restaurants began to open outdoor eating areas in late May, employers were actively recruiting to fill open positions.
Labour shortages are anticipated to worsen
According to a new RBC research, labour shortages will worsen in the upcoming months. Workers postponed retirement and job changes in 2020 owing to discontent during a period of severe economic uncertainty. These employees may now begin to leave their employment, increasing the number of open positions. In addition, many workers in pandemic-affected service sectors may have been laid off as a result of lengthy shutdowns.
According to the latest reports, a high job vacancy rate might stifle economic development. Businesses may be obliged to limit their capacity. Employees now have a stronger negotiating position to demand greater salaries and better benefits. Furthermore, a tight labour market may put upward pressure on salaries, resulting in increased consumer costs.
Provinces with the greatest job vacancy rates may have difficulty filling lower-wage occupations. Although earnings in lodging and food services increased in June, they remained 57% lower than the pay in other service-sector occupations. This may explain the surge in food service openings, and the industry may continue to suffer if people leave permanently.
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