Canadian Unemployment Grows in ‘Labour-Constrained Economy’

Emmet McGonagle

December 1, 2023

Canada’s unemployment rate has trended higher once again this month, according to the latest iteration of Statistics Canada’s November labour force survey.


The survey reported that Canada’s jobless rate rose to 5.8 per cent in November - up from 5.7 per cent in October - which is being credited to the Bank of Canada's steep interest rate hikes and their detrimental effect on the economy.


While employment increased in manufacturing (+28,000; +1.6%) and construction (+16,000, +1.0%), declines occurred across retail (-27,000; -0.9%), finance, insurance, real estate, rental and leasing (-18,000; -1.3%).


However, Canada’s economy added a modest 25,000 jobs last month, falling short of the pace of population growth. Due to this, economists maintain the Bank of Canada will continue to hold its key interest rate steady.


Unsurprisingly, the people of LinkedIn have some choice thoughts about Canada’s “labour-constrained economy”.


David-Alexandre Brassard, chief economist at Chartered Professional Accountants of Canada (CPA Canada), said: “The interest rates are starting to bite like we expected them to, resulting in a stunted economy. The labour market holding strong illustrates that we are in a labour-constrained economy.”


“Wage pressures by themselves should not be enough to maintain inflation in unsustainable territory. On the contrary, higher interest rates seem to be sufficiently constraining and we can expect the Bank of Canada to hold their ground with no changes to the rate in next week’s announcement,” he continued.


On the plus side, hourly wages rose 4.8% (+$1.57 to $34.28) on a year-over-year basis due to staff asking for more money to combat inflation.


On the topic, Charles St-Arnaud, chief economist at Credit Union Central Alberta, remarked: “The Bank of Canada will take comfort in seeing slower momentum in wage gains, but wages continue to grow at levels that are disconnected from productivity gains. 


“The rise in the unemployment rate suggests that some slack is gradually building up in the labour market, which should help ease some of the upside pressures on wages.”


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Workers Call for Pay Transparency

By Emmet McGonagle • November 29, 2023
More than half of workers believe that disclosing worker compensation details on job postings will lead to better equality in pay, according to the latest iteration of LinkedIn’s Workforce Confidence Index . The index - which is based on a survey of 3,302 members in Canada between June and September 2023 - found that 52% of people asked felt that people sharing their pay information (including salary and bonus) would improve workplace equality, compared to 48% in 2022. This number varies between different generations, with younger Canadians more likely to express support for pay transparency (73%), followed by 69% of Millennials, 46% of Gen X and 44% of Baby Boomers. However, 37% of those surveyed remarked that they felt anxious about sharing their pay information - a 2% rise from the year prior. Likewise, just under half (49%) said they felt well compensated for the work they do while 74% expressed that the pay gap between CEOs and employees had become too wide. The people of LinkedIn have come out in their dozens to give their two cents on the topic, with Adrienne Tom , executive resume writer for executives, saying: “ I'm all for salary transparency, so long as the number is clear and legit. Some postings list salary ranges so wide that the actual salary number isn't entirely clear, leaving job seekers confused.” “If you have a manager who is not advocating for the pay gap, you are working for the wrong manager,” remarked career strategist Sweta Regmi , while noting that women in Ontario earn an average of $0.87 for every dollar earned by men. On the topic, she added: “Salary ranges with job postings can help close the gender pay gap while allowing companies to find qualified candidates more quickly.” Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page .

The Quick Fix of ‘Envy Offices’

By Emmet McGonagle • November 29, 2023
Is an ‘envy office’ the best way to position your business? Well, according to WSJ, offices that "combine the comforts of a living room and the glamour of a vacation” are becoming a post-pandemic trend in a bid to lure employees back into some semblance of an office lifestyle. These offices are reportedly embellished with “Instagrammable” aesthetics which intend to cater to Gen-Z talent; however, the concept doesn’t seem to have been well received by LinkedIn-based users. However, in an ever-changing working world not everyone considers this to be an ideal investment of time or money. Brad Kay , founder of Chief Brand Advisory , remarked: “Aesthetically-driven solutions alone will NOT bring people back to the office. “Offices need to transform into sanctuaries of creativity and camaraderie, reflecting the warmth and welcome of a beloved gathering place. They need to foster an atmosphere where everyone feels a sense of belonging.” On the topic, Brad continued: “The magic lies in designing spaces that are not only comfortable, beautiful, welcoming, and accessible; that not only foster a sense of belonging and provide social spaces and features; and that not only enhance productivity but also promote wellness and fulfillment — but in harmonizing all three elements.” According to a global survey by The Times which evaluated the working environments of around 14,000 workers, almost 40% of employers redesigned their offices during the pandemic. Tamara Sanderson , cofounder of Remote Works, said via LinkedIn: “What if we put more time into designing a #remotework culture that works than putting more money into offices to ‘lure’ young people back to the office?” She added: “Why does all this Instagramable beauty need to be sequestered to a single 50-person company rather than being a place that can be shared by the public? We need more beautiful, third-spaces - the library, the park, the coffee shop, the pub—where we can mix with people other than our coworkers.” Do you have a question about angel investing? Get in touch with Valhalla Private Capital via o ur contact page .
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