Impact Of Rising Inflation On Canadian Job Market

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. 


Conclusion

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. 

Jombone, your staffing partner in the cloud, makes finding hourly workers easier and faster as per your business needs. Benefits like 24×7, transparency, brand visibility, control, and more help you be agile and focus more on your business growth. Start your Jombone journey today to stay on top of the game in today’s business world.