The Job Market – March 2024

A rising unemployment rate, layoffs, the expectation of lower interest rates, employers who are desperately short of talent, and those who say they’re finally receiving loads of CV  for the first time since the pandemic – today’s job market isn’t always easy to follow!

Our mission today: to demystify and clarify the facts, to help you see things more clearly!

First things first – what about the unemployment rate?

In Quebec, it rose by 0.2% between January and February 2024 – from 4.5% to 4.7%. At the same time, in Canada, it rose by 0.1% to reach 5.8%.

In the usual socio-economic context, a rise in the unemployment rate may indicate an economic slowdown. But let’s not forget that the unemployment rate remains one of the lowest we’ve seen in the last 10 years – averaging 6.3% in Quebec. This historically low unemployment rate reflects the ever-present issue of labour shortages.

Job growth

February saw an increase in Canadian employment. The strongest growth was in hotel chains and restaurants (+ 2.4%), followed by professional, scientific, and technical services (+ 0.9%).  On the other hand, employment declined in the educational services (- 1.1%) and manufacturing (- 0.8%) sectors.

The employment growth we saw in 2023 (+2.3%) in Quebec is not as significant as it was in 2022 (+3%), or even in 2021 (+4.3%). We can understand that the astonishing employment growth observed in 2021 and 2022 is attributable to post-pandemic recovery, as well as very strong growth in information and communications technology (ICT) services, construction, and professional services.

So, will the job market slow down or not? It’s possible – in recent months, we’ve seen the labour force grow faster than employment. However, it’s important to stress that this is not the last swing of the pendulum – candidates will continue to have the power in the job market! 

After all, there will be nearly 1.44M jobs to fill in Quebec by 2030. Oh, and 85% of the jobs in 2030 don’t even exist yet!

More passive candidates open to opportunities

Many employers are reporting that they are (finally) receiving applications for their most sought-after positions. How is this possible when unemployment is still low? According to Robert Half, 42% of Canadian workers have already started actively looking for a new job, or intend to do so in the first half of 2024. What would motivate them to change jobs? Better salaries, more flexibility and professional fulfillment.

Once again, this data shows just how important the employee experience is, and how companies with good retention, thanks to good internal processes and a solid culture, will come out on top.

How can we attract and retain more talent in 2024?

We’re not inventing anything – our formula is proven because it works! The following strategies will help you better attract new talent and keep those who are already part of your company!

• Strategies for attracting talent

We’re not talking about a complex, costly employer branding strategy here. Sometimes, it’s better to keep it simple: revise your job postings to reflect who you are, and to highlight the company’s history, culture, and more! Don’t hesitate to go beyond the formal framework of the job description to make your posting an attractive offer and to highlight your differentiating elements, such as creating a calendar of publications on social networks to promote yourself as an employer!

• Candidate experience 

72% of candidates who have a negative experience with you will talk about it openly – online and/or in their circle of friends.

To give them a good experience, focus on a well-structured recruitment process, with open and friendly follow-ups at every stage of the recruitment process. It’s a small investment of time that pays off big time!

• Integration of new employees

Did you know that the first few weeks on the job really set the tone for your newcomer’s commitment to the job for their entire career with you?

We’ve written several articles on the subject: take a look here!

In fact, did you know that the Quebec population is increasingly well-educated, while more and more job vacancies require few qualifications? The manufacturing, construction, hospitality and retail industries will not only have to rethink the way they recruit, but they’ll also have to be innovative if they’re to find sustainable solutions to the labor shortage in their sector.

Building a prosperous future: what options do employers have?

A serious shortage of available people in the Canadian job market will only get worse in the coming years – while best recruitment practices may bring more people to you, there will still be a shortage in the market as a whole! As a company, what can you do to prevent this?

Here’s what the most astute will do:

• Revise their organization charts, review the skills required and invest in development and training programs.
• Allow greater flexibility in their resources. For example, hire a retired expert on a part-time basis to support a less experienced talent. 
• Review their value proposition to employees and ensure that it fits perfectly with their corporate culture.
• Recruit from less conventional talent pools, from under-represented demographic groups.
• Provide more coaching and resources to management teams, so that they can excel in developing their teams.
• Implement an international recruitment strategy.
• Automate certain processes and optimize existing ones.
• Form partnerships with educational institutions to plan for the future.
• Join forces with employers in the same industry to promote the profession and attract more students to the training programs.

In conclusion, the job market in March 2024 is characterized by a few fluctuations compared to last year. However, this period does not escape the trend of recent years in terms of labour availability. Nevertheless, it is essential to recognize that the market remains largely favourable to candidates: this situation underlines the importance for companies to rethink all their recruitment and retention strategies – and even the way they organize work – in the short, medium and long term.

SOURCES: available on request.