Help-wanted Index indicates modest job gains in the near term
Ottawa, ON -- The Conference Board of Canada’s Help-Wanted Index posted a significant gain in July 2012, climbing 9.9 points to 131.3. That was a big improvement from what was seen over the first six months of the year when the index...
Ottawa, ON — The Conference Board of Canada’s Help-Wanted Index posted a significant gain in July 2012, climbing 9.9 points to 131.3. That was a big improvement from what was seen over the first six months of the year when the index failed to gain any ground — in June, the index was at the same level it was at in January.
In recent months, the uncertainties created by the debt crisis in Europe and a potential slowdown in China and the US have made Canadian employers more cautious when it comes to hiring.
This reluctance to hire is reflected in the monthly employment numbers. After posting only weak employment gains in May and June (with fewer than 8,000 jobs created in either month), the labour market lost 30,400 jobs in July.
The increase in July’s Help-Wanted Index suggests that the situation should stabilize. Still, based on the index, we are likely to see only modest job gains in the near term, and we expect the August numbers to show a gain of only 12,900 jobs across Canada.
With the exception of Saskatchewan, all provinces posted gains in their indexes. Significant gains were recorded in Atlantic Canada. Newfoundland and Labrador’s index recorded the biggest jump — 35 points.
The Conference Board of Canada’s Indicator of Labour Market Tightness suggests that the labour market continued its tightening trend that began earlier this year. Indeed, the number of unemployed individuals for every job posted online fell slightly — from 2 in June to 1.97 in July. Despite a rise in the number of unemployed individuals, the labour market tightened thanks to an increase in the number of job postings.