OTTAWA
,
December 18, 2023
(press release)
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Job vacancies decrease for the fifth consecutive quarter Meanwhile, payroll employment rose by 117,600 (+0.7%) in the third quarter of 2023, the 10th consecutive quarterly increase. However, payroll employment has increased at a slower pace than the population aged 15 years and older (from the Labour Force Survey) since the fourth quarter of 2022. In the third quarter of 2023, the population aged 15 years and older rose by 261,100 (+0.8%). The quarter-over-quarter growth rate in total labour demand (the sum of filled and vacant positions) was 0.3% in the third quarter, down from 1.0% in the third quarter of 2022. The job vacancy rate—which corresponds to the number of vacant positions as a proportion of total labour demand—decreased to 3.9% in the third quarter of 2023, down from 4.3% in the previous quarter. This was the fifth consecutive quarterly decline and the lowest rate since the first quarter of 2021 (3.8%). Labour market tightness eases as unemployment-to-job vacancy ratio rises Consistent with these findings, mainly the easing in labour market tightness, recent results from the Canadian Survey on Business Conditions for the fourth quarter of 2023 indicated that 40.3% of businesses expect at least one labour-related obstacle over the next three months, down from 47.7% in the third quarter. The most commonly expected labour-related obstacle in the fourth quarter was recruiting skilled employees (29.4%). Infographic 1: Labour market tightness eases as job vacancies continue to fall Growth in average offered hourly wage accelerates in the third quarter, yet moderates compared with one year earlier Part of these increases were due to a shift in the relative composition of job vacancies from lower- to higher-offered-wage occupations. Using a method that holds the composition of job vacancies by occupation at the third quarter of 2022 average, the year-over-year average offered hourly wage grew 3.5% in the third quarter of 2023, up from 3.2% in the second quarter, but down from 5.5% in the third quarter of 2022. Occupations with high annual growth of their average offered hourly wage in the third quarter of 2023 included general farm workers (+10.5% to $19.00) and welders and related machine operators (+8.7% to $28.65). In contrast, estheticians, electrologists and related occupations (-7.1% to $17.60) and professional occupations in business management consulting (-5.2% to $36.55) saw their offered hourly wages fall on a year-over-year basis in the third quarter. Sales and service occupations continue to drive decline in vacancies Previously released data from the Labour Force Survey show that—excluding management within each broad occupation—employment in sales and service occupations was little changed in the third quarter of 2023. On a year-over-year basis, job vacancies fell by 100,000 (-32.6%) in sales and service occupations in the third quarter. This was the largest year-over-year decline of any broad occupational group. Within this broad occupational group, food counter attendants, kitchen helpers and related support occupations (-26,300 to 47,500) and retail salespersons (-17,700 to 30,100) saw the largest year-over-year drops in vacancies in the third quarter. The average offered wage was $16.15 for food counter attendants, kitchen helpers and related support occupations, and $16.60 for retail salespersons. Almost all the unfilled positions in these two occupations (97.4% in the third quarter) require a high school diploma or less (not seasonally adjusted). Fewer job vacancies in trades, transport and equipment operators and related occupations On a year-over-year basis, the number of unfilled positions in trades, transport and equipment operators and related occupations fell by 42,700 (-24.1%) in the third quarter of 2023. Construction trades helpers and labourers (-6,900; -27.4%) and transport truck drivers (-6,800; -25.1%) recorded the largest decreases in vacancies within this broad occupational group. These two occupations were also among the top-10 occupations with the largest annual decreases in vacancies in the third quarter. Job vacancies down in six other broad occupational groups in the third quarter There were also fewer job vacancies in five other broad occupational groups in the third quarter of 2023, while the number of vacant positions was little changed in health occupations (89,400) and in education, law and social, community and government services (64,800). Year-over-year decreases in vacancies in health occupations for the first time since 2015 Over the same period, the lowest proportional annual drop was recorded in occupations in education, law and social, community and government services (-3.9% to 64,800), followed by health occupations (-6.1% to 89,400), which saw their first year-over-year decline in vacancies since the first quarter of 2015, the earliest quarter for which comparable data are available. The year-over-year drop in vacancies in health occupations in the third quarter of 2023 was driven by nurse aides, orderlies and patient service associates (-5,500; -21.0%) and other medical technologists and technicians (except dental health) (-1,100; -29.9%). These declines were partially offset by more vacancies for registered nurses and registered psychiatric nurses (+2,700; +9.8%), which saw the largest annual increase in vacancies in the third quarter. Chart 1: Though widespread, quarter-over-quarter and year-over-year proportional decreases in vacancies vary across broad occupation groups Largest proportional decline in vacancies for positions requiring high school diploma or less In comparison, the number of vacancies for positions requiring a bachelor's degree or higher fell 15.2% (-17,700) over the same period, while the unemployment-to-job vacancy ratio rose to 3.7 in the third quarter of 2023, up from 2.7 in the same quarter of 2022. The average offered hourly wage for vacant positions requiring a high school diploma or less grew 5.2% year over year to $20.40 in the third quarter of 2023. In contrast, the average offered hourly wage for the positions requiring a bachelor's degree or higher was little changed at $39.95 in the third quarter. Infographic 2: Job vacancies for positions requiring a high school diploma or less fall at fastest pace in third quarter Fewer job vacancies in 26 of 69 economic regions At the regional level, job vacancies were down in 26 of 69 economic regions in the third quarter, with the largest proportional drop recorded in Mauricie, Quebec (-30.4% to 3,800). Meanwhile, Southeast, Manitoba (+23.7% to 2,400) was the lone economic region to report more vacant positions, while job vacancies held steady in the remaining 42 economic regions. Year over year, the job vacancy rate declined in 54 economic regions in the third quarter, including the two with the highest rates of all economic regions in the third quarter of 2022: Yukon, Yukon (from 8.0% in the third quarter of 2022 to 5.4% in the third quarter of 2023), and North Coast and Nechako, British Columbia (from 7.6% to 6.4%). Meanwhile, the job vacancy rate rose in four economic regions, led by Parklands and North, Manitoba (+1.1 percentage points to 5.7%) and Swift Current – Moose Jaw, Saskatchewan (+1.1 percentage points to 6.1%). The job vacancy rate was little changed in the remaining 11 economic regions over the period. Chart 2: Lower job vacancy rates in the third quarter in the 10 economic regions with the highest job vacancy rates a year earlier Note to readers Estimates by sector are based on the North American Industry Classification System 2017 Version 3.0. Estimates by geographical area are based on the Standard Geographical Classification 2016. Estimates by occupation reflect the National Occupational Classification (NOC) 2016 Version 1.3. The NOC is a four-tiered hierarchical structure of occupational groups with successive levels of disaggregation. The structure is as follows: (1) 10 broad occupational categories, also referred to as one-digit NOC; (2) 40 major groups, also referred to as two-digit NOC; (3) 140 minor groups, also referred to as three-digit NOC; and (4) 500 unit groups, also referred to as four-digit NOC. Because of the COVID-19 pandemic, data collection for the JVWS was suspended for the second and third quarters of 2020. In January 2020, a new electronic questionnaire was introduced. Minor changes to the content are documented in the most recent Guide to the Job Vacancy and Wage Survey (Catalogue number75-514-G). Beginning with the reference period of October 2020, preliminary monthly estimates from the JVWS are released on a monthly basis alongside the Survey of Employment, Payrolls and Hours release. These estimates provide information on the number of job vacancies and the job vacancy rate by province and by industrial sector. The target population of the survey includes all business locations in Canada, excluding those involved primarily in religious organizations and private households. Federal, provincial and territorial, as well as international and other extraterritorial public administrations, are also excluded from the survey. Unless otherwise stated, this release presents seasonally adjusted estimates, which facilitate comparisons by removing the effects of seasonal variations. For more information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions. Seasonally adjusted quarterly job vacancy data are available online (tables 14-10-0398-01, 14-10-0399-01 and 14-10-0400-01). The analyses of the job vacancy levels and rates by sector (20 broad industrial sector groups), one-digit NOC (10 broad occupational categories), province and economic region are based on seasonally adjusted data. However, the analyses of the job vacancy levels and rates by subsector, two-digit NOC, three-digit NOC and four-digit NOC are based on non-seasonally adjusted data. This analysis focuses on differences between estimates that are statistically significant at the 68% confidence level. Next release Products The product "Labour Market Indicators, by province, territory and economic region, unadjusted for seasonality" (Catalogue number71-607-X) is also available. This dynamic web application provides access to Statistics Canada's labour market indicators for Canada, by province, territory and economic region, and allows users to view a snapshot of key labour market indicators, observe geographical rankings for each indicator using an interactive map and table, and easily copy data into other programs. Contact information Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.
Job vacancies fell by 69,900 (-9.0%) to 706,100 in the third quarter, marking the fifth straight quarterly decline from the record high reached in the second quarter of 2022 (990,900).
While job vacancies decreased in the third quarter of 2023, the number of unemployed persons (from the Labour Force Survey) increased by 79,500. As a result, there were 1.7 unemployed persons for every job vacancy in the third quarter, up from 1.4 in the previous quarter, and 1.1 in the third quarter of 2022. Despite these continued increases, the unemployment-to-job vacancy ratio in the third quarter of 2023 remained below pre-COVID-19 pandemic levels, which were typically above 2.0.
On a year-over-year basis, the average offered hourly wage grew at a faster pace in the third quarter (+5.8% to $25.60) compared with the second quarter (+4.4% to $25.10), but at a slower pace compared with the third quarter of 2022 (+7.3% to $24.20). In comparison, year-over-year average hourly wages of all employees (from the Labour Force Survey) grew 5.0% in the third quarter of 2023, up from 4.8% in the second quarter (data used in this section are not seasonally adjusted).
Job vacancies in sales and service occupations declined by 34,600 (-14.3%) to 206,500 in the third quarter, the largest quarterly decline of any broad occupational group for the fifth quarter in a row. As a result, vacancies in sales and service occupations accounted for 29.2% of all vacancies in the third quarter, down from 33.5% in the second quarter of 2022.
The number of job vacancies declined by 9,300 (-6.5%) to 134,200 in trades, transport and equipment operators and related occupations in the third quarter, marking the fifth straight quarterly decline from the record high (182,300) reached in the second quarter of 2022.
The number of vacant positions in business, finance and administration occupations fell by 8,100 (-9.4%) to 77,500 in the third quarter, following three consecutive quarterly declines from the peak of 105,000 vacancies in the second and third quarters of 2022.
On a year-over-year basis, job vacancies fell in all 10 broad occupational groups in the third quarter of 2023. Proportionally, occupations in manufacturing and utilities recorded the largest drop (-46.9% to 25,900), followed by natural resources, agriculture and related production occupations (-35.0% to 15,600) and natural and applied sciences and related occupations (-34.6% to 44,500).
On a year-over-year basis, there were fewer job vacancies for all educational levels sought by employers in the third quarter. Proportionally, positions requiring a high school diploma or less (-31.3%; -189,400) saw the largest year-over-year declines in vacancies. The unemployment-to-job vacancy ratio for these positions was 1.3 in the third quarter, up from 0.8 in the same quarter of 2022 (data used in this section are not seasonally adjusted).
The number of vacant positions declined in six provinces and was little changed in the other four in the third quarter. Ontario (-29,700 to 246,800) reported the largest quarter-over-quarter decline, followed by Quebec (-25,400 to 165,400) and British Columbia (-9,200 to 114,700). Year over year, job vacancies fell in nine provinces and were little changed in Saskatchewan.
The Job Vacancy and Wage Survey (JVWS) provides comprehensive data on job vacancies and offered wages by industrial sector and detailed occupation for Canada and the provinces, territories and economic regions. Job vacancy and offered wage data are released quarterly.
Data on job vacancies from the JVWS for the fourth quarter of 2023 will be released on March 19, 2024. At that time, recent and historical JVWS quarterly data will also be replaced with revised estimates. All seasonally adjusted and unadjusted data series, starting from the first quarter of 2015, will be revised to use the latest standards, namely the North American Industry Classification System 2022 Version 1.0; the Standard Geographical Classification 2021; and the National Occupational Classification (NOC) 2021 Version 1.0. These changes will align JVWS data with the latest standards and improve the coherence with other labour market data.
More information about the concepts and use of data from the Job Vacancy and Wage Survey is available online in the Guide to the Job Vacancy and Wage Survey (Catalogue number75-514-G).
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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