Canada’s hiring index rose 6.7% month over month in March, the highest increase since July 2022, according to The Conference Board of Canada’s new Canadian Hiring Index. However, job postings decreased 5.1% year over year in March.
The Conference Board of Canada launched the index today. It provides monthly data that track changes in the volume of online job postings by occupation and industry as well as in all provinces and 29 major cities across Canada. Job posting data are collected from company websites and online job boards.
“This Index is being introduced to provide businesses and employers with insights into changes in gross labor demand in the economy,” said Sohaib Shahid, director of economic innovation at The Conference Board of Canada. “We also include a measure of labor market tightness, which provides a read on labor market demand relative to labor force capacity at national and provincial levels.”
The manufacturing, construction and utilities sectors saw the most notable rise in the index compared to the previous month.
Increased immigration levels in Canada are driving both population and labor force growth, resulting in notable employment gains, according to the report. However, The Conference Board of Canada anticipates the unemployment rate to rise in 2023 as the demand for workers from organizations wanes and the ability of an increasing population to find work weakens.
“Our research found that across provinces, Saskatchewan has the most job postings relative to the size of its labor force, suggesting particularly tight labor market conditions,” said Liam Daly, an economist at The Conference Board of Canada.