Canadian Job Vacancies Are Soaring Due To Stimulus, But Wage Growth Isn’t: BMO

Posted by Daniel Wong,

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Canadian employers are making jobs faster than people can fill them. In two separate reports, BMO economists took a dive into rising job vacancies and wages in Q2 2021. They found job vacancies hit a new record high last quarter. A lack of labor doesn’t appear to have much urgency though, as wages are still only showing modest growth.

Canadian Job Vacancies Soar To A New Record High

Job vacancies continue to climb, reaching the highest level on record. Statistics Canada (Stat Can) reported 731,900 job vacancies in Q2 2021. No data was recorded last year due to the pandemic, but vacancies are 25.8% higher than Q2 2019. About 4.6% of jobs across the country are currently vacant.

The gaps are due to the pandemic, but perhaps not the parts you might expect. Economists have attributed the issue to “disincentives” created by generous government unemployment benefits. BMO sees an additional reason — a rising demand for goods. Stimulus and low interest rates are driving consumption, pushing the need for labor…read more.