The holiday job market in Canada is showing slight improvement this year, with job postings for seasonal positions increasing by 12% compared to the previous year, according to a new report released by Indeed Canada. However, despite this uptick, competition for these roles is expected to remain fierce, as the unemployment rate hovers at 6.9%, reflecting a still-challenging labor market.
Brendon Bernard, senior economist at Indeed Canada and author of the report, noted that the demand for seasonal workers typically reflects broader economic conditions. The last two holiday seasons were heavily influenced by high interest rates and inflation, factors that constrained hiring as consumers reduced their spending. This year, however, consumer spending seems more stable, and many retailers are reporting a "fairly solid year," suggesting a better hiring landscape for the upcoming season.
Sandra Lavoy, Metro Market Director at Robert Half, corroborates Bernard's assessment, stating that the holiday job market appears more robust this year. Many industries, especially service and retail, have been operating with minimal staffing, but the increased demand during the holiday season makes it difficult for businesses to maintain low staffing levels.
Despite the increased availability of holiday jobs, securing one has become more competitive. The October labor market report from Statistics Canada indicates that the unemployment rate remains elevated, although there have been a few months of unexpected job gains. Indeed Canada’s data shows that the interest in seasonal work is rising. In early November, the share of job seeker searches on Indeed that included holiday-related terms reached three per 1,000 searches, marking a noticeable rise from previous years.
While the increase in searches for seasonal job openings is a positive sign, it may not necessarily reflect a healthy labor market. The report suggests that the heightened interest in temporary work could indicate that some job seekers are looking for short-term positions to make ends meet, a shift from their usual preference for permanent roles. Bernard argues that this trend may create added challenges for securing seasonal employment compared to previous years.
The summer hiring environment earlier this year was highly competitive due to weak labor market conditions. However, Bernard notes that the dynamics of holiday hiring differ significantly from summer, despite some similarities in the economic landscape. The volume of jobs available in summer typically surpasses that of the holiday season, making it a different hiring context altogether. Indeed Canada’s summer hiring report revealed that job postings had dropped by 22% in May year-over-year, highlighting the challenges faced this year.
Overall, while the report indicates a slight increase in holiday job postings, caution is warranted as the market might not be as robust as it may appear. Business conditions and consumer behaviors will play crucial roles in shaping the hiring landscape as the holiday season approaches.
