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Despite jobless rate, 248K vacancies posted last summer

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Date: Tuesday Jan. 24, 2012 3:49 PM ET

OTTAWA — Canada had a quarter of a million job vacancies during the summer months last year, but there were three times as many people looking for work, according to a new type of survey from Statistics Canada.

The agency said Tuesday there were 248,000 job vacancies on average during July, August and September 2011, when the national unemployment rate ranged from 7.1 per cent to 7.3 per cent. It now stands at 7.5 per cent.

Even so, the report shows that for every job opening, there were 3.3 Canadians officially looking for work.

The highest vacancy rates were recorded in educational services, followed by construction and manufacturing, and in the relatively low-unemployment provinces of Saskatchewan and Alberta.

The report is the first of its kind from the federal data-collecting agency, so cannot be compared with previous findings to determine if the number of vacancies was low, high or normal. Statistics Canada plans to collect data each month from now on, and issue a report quarterly.

An analyst with the agency cautioned the data cannot be interpreted to determine if unemployed Canadians are spurning jobs for any particular reason. In particular, the data could be pointing to "mismatches" in job skills and geography between those who are unemployed and job openings, said Jason Gilmore of the agency's labour statistics division.

For instance, although comparisons are imperfect, similar surveys in the U.S. finds there are about 4.2 unemployed for every vacancy, a result that would be expected given the higher unemployment rate south of the border, CIBC's Emanuella Enenajor noted.

Economist Erin Weir of the United Steelworkers union said the Canadian survey still points to an extremely weak labour market.

"The finding that there were 3.3 unemployed people in Canada for every job vacancy confirms that the main problem is a lack of jobs, not alleged disincentives to work or barriers to labour mobility," Weir said.

In the most up-to-date labour report for December, Statistics Canada said there were 1.4 million Canadians officially unemployed.

But other analysts said the unknowns in the data make it difficult to drawing definitive conclusions.

"What we don't know is, who's looking for jobs and what jobs are available and where, or how long the jobs are unfilled," explained economist Benjamin Reitzes of BMO Capital Markets.

Another weakness of the report, said Reitzes, is that the data are not seasonally adjusted. That could account for the 10-to-one ratio of unemployed to vacancies during the summer months -- when almost all schools are out.

The survey will likely become more useful once there are several years of data to compare, he said.

The report does tend to support underlying patterns of employment from other sources.

In its most recent business survey, the Bank of Canada reported the number of firms reporting labour shortages in November and December "rose notably" in Western Canada, mostly offset by declines in Central and Eastern Canada.

The Statistics Canada survey shows that where the economy is strongest -- Alberta and Saskatchewan -- the vacancy rate is highest, at 2.6. Ontario was next highest at 1.7, the national average, and Prince Edward Island was lowest at 1.2.

Comments are now closed for this story

SF Thomas
said

I certainly didn't find any of those vacancies last summer. I spent most of the season looking for a summer job (I tried mostly longer wait restaurants ie Kelsey's, Swiss Chalet etc and retail) while I was between university years and never found anything. In all my searching I only got a single interview which failed to yield any job. Luckily I had enough saved between my own accounts and my parent's education savings for second year without having to pay any debt, but it was still a huge waste of a summer when I could have been earning money for later years, or saving up for long term once I finished school.


George
said

The highest vacancy rates were recorded in educational services. This has been happening for years, every summer teachers go on EI


Bob
said

I wonder how they gather the numbers as I know where I am from businesses have long since stopped using employment offices and papers and use kijiji and web sites as its more functional


Jobs, jobs, jobs
said

So, what we can learn is move to Alberta and Saskatchewan if you are unemployed. Every day I see many job postings in Alberta, and many are decent paying jobs as well. But, as one poster said, for many its easier to just live off the government than work hard, or move where the work is. Also, the highest level of vacancies was in education, construction and manufacturing, these are not jobs flipping burgers, these are likely at least decent paying jobs. No one starts at the top, its time people have realistic expectations. When I graduated with a masters degree I made $24,000/year and lived with a roommate so I only paid $500/month in rent. Now, many years later, I make six figures and own a condo. That is what it takes, and people need to be realistic. Nowadays, an undergrad degree doesn't mean what it did when are parents were younger, accept that you might have to make a low salary and work your way up. I also have a friend who worked at McD's for years in high school, and by the beginning of college was making $50,000 as a manager at McD's, so don't reject those jobs either, there is potential everywhere.


BinBarrie
said

"The highest vacancy rates were recorded in educational services"Geez maybe because schools are out for the summer and a number of employees go on EI for the summer because they know they will be going back to their schools in the fall rather than take another job that would start in the fall not the summer


Doug ^^^ BC
said

Well said "island girl".Although I have a different take on why young people don't want to start at the bottom.I don't think it's evil intent or just lazy people.I think there is a natural evolution of some kind. My theory is that young people want to live the same standard of living as they have when they leave their parents home.But they fail to take into account,that by the time they leave their parents home,their parents have 20 years or more of hard work behind them.Which is the standard of living they earned over time.They were almost certainly a lot less well off when they started out in life. I had not opportunity for university.As such,I started at the bottom.It took more than a decade just to get into a trade.In spite of that,and in spite of the fact that I never made "big money" in my entire career,I'm doing OK.NOt rich.Just OK. And sometimes,OK is what you have to settle for.If those are the skills you bring to the table, those are what you will find on your pay cheque.I see nothing unfair in that. Not do I agree with the poster that says it's better to keep looking than to take a job that doesnt pay the bills.WRONG.Any job is better than no job.Any income is better than none. I have taken several lousy jobs when no good jobs were available.You can still be looking while you are working.You can still be upgrading your skills while you are working.Potential employers place a lot of weight on whether you have been working,or been idle for extended periods of time. The secret to success is to never stop working and never give up.


Chris in Edmonton
said

Arrt you are the reason for the unemployment rate being where it is. That is such an ignorant statement you made. You are essentially saying you do not want to work. Jobs breed jobs, plain and simple. Time for people to get off their butts and stop being so proud. Our economy would be that much better off.


Amar H
said

Why would someone "work" for low wage when they can sit at home watch tv and go on twitter while collecting from the gov't dole.


Sid
said

Thanks for your insightful comment Ryan I guess you'd rather see kids go hungry & people forced into bankruptcy than find a job that pays the bills.


island girl
said

we have a whole generation of young people who expect to be making what their parents are. They want houses that are 300-400 thousand dollars.. and then complain that they can't take some jobs because they won't pay the bills... maybe they need this dose of reality... start at the bottom.. it will get better... we all did it.. and thank God, so are my son.. out of college and 2 weeks later found a full time job...nope it doesn't pay 60,000 a year, but the experience he will gain is priceless.....


Arrt
said

Lots of job yes but many of these jobs don't pay the bills, it's better to keep searching than working two jobs to pay the bills. Wages in construction jobs have dropped so much in the past few years I couldn't afford to stay in the industry. Soon all those jobs that went to China will be back in Canada because they pay so low the Chinese don't want them.


Ryan
said

Get to work people, flipping burgers is a lot more dignified than being unemployed and being a drain on the taxpayers.


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