The rate of inflation in Canada is increasing, with the largest increase since January 1991. Statistics Canada reports that consumer prices in Canada increased 6.7% from a year earlier in March. Inflation is affecting everything, including food, transportation, and the workforce. Today we will look at four impacts rising inflation is causing on the Canadian job market.
1. Inflation on labour wages is rising
A higher cost of living is driving workers to seek higher wages. To cope with the high cost of living, more people are switching jobs now than ever before to move to higher-paying jobs. These employees feel they deserve more and deserve compensation that reflects their hard work and contribution.
2. High competition among businesses to hire talent
In the face of inflation pressures and an increasingly tight labour market, businesses are having trouble retaining the workforce, ultimately resulting in unmet business objectives. As a result of the post-pandemic diversification of labour, businesses are under more pressure to retain their staff, as a number of people are switching jobs or industries to move to higher-paying careers.
3. Organizations playing offensive to attract and retain the workforce
The business world is now playing aggresively to stay competitive in this ever-changing labour market by increasing compensation levels and offering more incentives to recruit new workers. Employers must be adaptive and fast in their recruitment process to be able to hire quality candidates.
4. Labour supply and demand are unbalanced
A significant proportion of the older working population is approaching retirement, but as we lose more people to retirement, we don’t have enough young people to balance the ratio. The result has been an imbalance between supply and demand in the labour market, causing labour shortages. Due to the pandemic, the immigration rate in Canada is much lower than expected and it has contributed to the already struggling labour force growth.
With labour shortages in the job market, as a business how can you resolve the hiring issues? Contact Jombone today to help with your start-to-end hiring process for the workforce as per your business needs.
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