{"id":14556,"date":"2024-12-18T05:45:00","date_gmt":"2024-12-18T10:45:00","guid":{"rendered":"https:\/\/www.hiringlab.org\/en-ca\/?p=14556"},"modified":"2025-02-05T13:53:52","modified_gmt":"2025-02-05T18:53:52","slug":"indeed-2025-canada-jobs-hiring-trends-report","status":"publish","type":"post","link":"https:\/\/www.hiringlab.org\/en-ca\/2024\/12\/18\/indeed-2025-canada-jobs-hiring-trends-report\/","title":{"rendered":"Indeed\u2019s 2025 Canada Jobs &amp; Hiring Trends Report: Trying To Turn the Ship Around"},"content":{"rendered":"\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Canadian job seekers faced difficult conditions to end 2024, as landing one&#8217;s first job, finding re-employment, and changing employers have all become tougher amid rising unemployment.<\/li>\n\n\n\n<li>Improvement in 2025 will depend on if the economy can generate stronger employer demand: Despite firming in Q4, job postings on Indeed were down 9% from a year earlier in December, which if continued could push the unemployment rate towards 7.5%.\u00a0<\/li>\n\n\n\n<li>Employer hiring appetite has cooled across the board, but job postings are still elevated in many regions (like smaller cities and rural areas) and for several occupations (especially healthcare, but also, education, engineering, and certain white-collar jobs).<\/li>\n\n\n\n<li>Foreign job seeker interest in Canadian jobs has plunged in the wake of new policies aimed at slowing population growth, especially for job postings in certain low and mid-paying occupations, but to muted effect on the employer hiring environment amid the weaker overall labour market. The impacts from rising outflows of non-permanent residents will be a wildcard in 2025.<\/li>\n\n\n\n<li>Wage growth was surprisingly robust in 2024 but will likely ease, as catch-up in paychecks to the earlier jump in cost of living fades. Growth of advertised wages on Indeed job postings slowed to a 3.0% year-over-year pace by October 2024.<\/li>\n\n\n\n<li>The share of Canadian job postings mentioning generative AI doubled in 2024 but remained quite low outside of postings for tech-related jobs, highlighting the still-limited application of the technology across much of the economy.<\/li>\n<\/ul>\n\n\n\n<p>With year-end approaching, the general verdict on the 2024 Canadian labour market is that it was \u201cnot good, but could have been worse.\u201d So what does this mean for 2025?<\/p>\n\n\n\n<p>It\u2019s unlikely conditions will turn around quickly. The unemployment rate in November 2024 stood at 6.8%, not especially high by historical standards but trending in the wrong direction, up 1.0 percentage point from a year earlier. And the deterioration was quite steady throughout 2024, with job growth, according to the Labour Force Survey (LFS), lagging rapid population growth in all but two months. Joblessness hasn\u2019t spiked as it did during previous downturns, mainly because layoff rates have <a href=\"https:\/\/x.com\/BrendonBernard_\/status\/1849153204862496961\" target=\"_blank\" rel=\"noreferrer noopener\">been relatively low,<\/a> but slow hiring has weighed substantially on the overall labour market.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdIVwJNFmwCTTU6KDQ72O53CffUxd1ohY9y7y-OD3kWsY7xZGiSyOC0MGzpNqvyezY1itw65aqz7pxEGViHjARruCyE1CGC_FHRFeRcMhsQ8BBYseqk4ukoytUBbYOALBfL0wYAQA?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Two-panel line graph titled \u201cThe Steadily weakening Canadian labour market.\u201d The left panel shows employment and population growth between June 2022 and November 2024, with the gap between the two trends widening over the past year. The right panel shows the unemployment rate between 2015 and November 2024, with the rate rising 1.0 percentage point from a year earlier, to 6.8%.\" \/><figcaption class=\"wp-element-caption\"><em>Two-panel line graph titled \u201cThe Steadily weakening Canadian labour market.\u201d The left panel shows employment and population growth between June 2022 and November 2024, with the gap between the two trends widening over the past year. The right panel shows the unemployment rate between 2015 and November 2024, with the rate rising 1.0 percentage point from a year earlier, to 6.8%.<\/em><\/figcaption><\/figure>\n\n\n\n<p>The combination of slow hiring and low layoffs has created a growing divide in conditions facing Canadian workers. Solid job stability has benefited comfortably employed people not necessarily looking for a change, but the situation has deteriorated for job seekers across a range of circumstances:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Youth are finding it tougher to land their first jobs.<\/strong> In November 2024, 25% of 15-to-24-year-olds had <em>never <\/em>worked before, up noticeably from the 20%-21% November rates that prevailed from 2013 through 2021.\u00a0<\/li>\n\n\n\n<li><strong>It\u2019s taking longer for out-of-work, core-age (25-to-54-year-old) Canadians to return to work.<\/strong> Long-term joblessness (those who want a job but haven\u2019t worked in more than six months) isn\u2019t particularly elevated, but rose from 2.5% in late 2022 to 3.2% in November 2024.<\/li>\n\n\n\n<li><strong>Job hopping \u2014 a key way people advance their careers \u2014 is down sharply.<\/strong> Following a temporary upswing in 2021, the monthly job switching rate has trended lower. It was just 0.43% in November 2024, well below its 0.7% pre-pandemic average.\u00a0<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXd7RSEVSM5I93_DC1Y-vNBhQH_3OjxE9iZ2X3kWwOmz7Zs9VeKY1iWZ00akF5h-cVUsBcpnZsyfcdpj_A7A80kt1HOO4hCkgKUJ6Or0akhjfNmZjwPid9mq1VeyspJ7iWRDwySr?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Three-panel line graph titled &quot;Emerging challenges for job seekers in different circumstances.\u201d The left panel shows the share of youth who have never worked, the middle panel shows the share of the core-age population who have been jobless over six months, and the right panel shows the job switching rate, all November data ending in 2024. All three metrics have deteriorated over the past two years.\" \/><figcaption class=\"wp-element-caption\"><em>Three-panel line graph titled &#8220;Emerging challenges for job seekers in different circumstances.\u201d The left panel shows the share of youth who have never worked, the middle panel shows the share of the core-age population who have been jobless over six months, and the right panel shows the job switching rate, all November data ending in 2024. All three metrics have deteriorated over the past two years.<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Stronger employer demand is crucial for a labour market turnaround<\/h2>\n\n\n\n<p>Employer demand will have to rebound, or at least stabilize, for job seeker conditions to improve in 2025. Total job postings on Indeed have moved higher since mid-September, but it&#8217;s too soon to call this uptick a trend. Canadian job postings still began December down 9% from a year earlier, matching their pre-pandemic level. Job vacancies, as measured by Statistics Canada\u2019s Job Vacancy and Wage Survey (JVWS), were tracking similarly as Indeed postings through September, down 18% year-over-year.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcg-pt8kF-5KBMeQnj2Nh46EkC4FqohxVOPF8yc2j5ti7eoMfUPbN3qooDL9ooPdZ2wF7NahPO61pXOWGhVCYicihCRNdyfiPlpxQcTNduLxZXTycYBN54J4fs6PAZHyxHLhSudtA?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled \u201cJob postings have fallen back to pre-pandemic levels\u201d shows Canadian job postings on Indeed and Job Vacancies, according to Statistics Canada, between February 2020 and October 2024 (as of the 6th of the month), indexed to February 2020 levels. As of early December 2024, Canadian job postings had edged up in recent months, but were still down 9% from a year ago.\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cJob postings have fallen back to pre-pandemic levels\u201d shows Canadian job postings on Indeed and Job Vacancies, according to Statistics Canada, between February 2020 and October 2024 (as of the 6th of the month), indexed to February 2020 levels. As of early December 2024, Canadian job postings had edged up in recent months, but were still down 9% from a year ago.<\/em><\/figcaption><\/figure>\n\n\n\n<p>Further declines in job openings would likely spell significant trouble for the labour market. The historical relationship between job vacancies and unemployment (known as the \u201cBeveridge Curve\u201d) suggests that joblessness is currently more sensitive to changes in labour demand than when the labour market was tighter in 2023. All else equal, this means an additional 0.5-point drop of the vacancy rate from its current 3.0%, could easily coincide with the unemployment rate rising to 7.5%. However, the ultimate trajectory of employer demand will depend on the broader state of the economy.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcNHeDhzEmt3kA5-ZNYdUTHUOJJRkq16DtRQODR8Biytb6XQ9WmbalJwhnlA59s9V5VlRaqasrkPOd5oSjOoub5IuVRG9867wcpe9D8rqI5rXT4bFwpqSGhe79njTxjtbryz1w6dQ?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Scatter plot titled \u201cUnemployment rate could hit 7.5% by mid-2025 if vacancies keep falling\u201d shows the Canadian Beveridge curve between 2015 and September 2024, with the unemployment rate on the x-axis and job vacancy rate on the y-axis. Based on recent trends the job vacancy rate might slip another 0.5 percentage points which could send the unemployment rate over 7%.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Scatter plot titled \u201cUnemployment rate could hit 7.5% by mid-2025 if vacancies keep falling\u201d shows the Canadian Beveridge curve between 2015 and September 2024, with the unemployment rate on the x-axis and job vacancy rate on the y-axis. Based on recent trends the job vacancy rate might slip another 0.5 percentage points which could send the unemployment rate over 7%.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>Until recently, <a href=\"https:\/\/www.bankofcanada.ca\/publications\/mpr\/mpr-2024-10-23\/canadian-outlook\/\" target=\"_blank\" rel=\"noreferrer noopener\">forecasts for 2025<\/a> projected a slight improvement in GDP growth ahead \u2014 partly because of the waning impacts of earlier Bank of Canada interest rate hikes \u2014 and a pick-up in per-capita GDP, after factoring in an expected slowdown in population growth. These developments would help avoid further labour market deterioration. Still, downside risks to the economy loom. One is that the factors currently weighing on growth persist, and the job market continues its gradual deterioration. However, things could also turn worse, particularly if layoffs rise amid uncertainty from a potential upheaval in <a href=\"https:\/\/thehub.ca\/2024\/12\/12\/trevor-tombe-what-do-trumps-threats-mean-for-working-canadians-2-4-million-jobs-are-exposed-to-u-s-tariffs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Canada-US trade relations<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Demand for workers varies across different segments of the labour market<\/h2>\n\n\n\n<p>Taking a longer view of employer hiring appetite, the overall boom and subsequent decline in total job postings since early 2020 has been evident in postings across almost all sectors and regions. Nonetheless, the extent of the ups and downs varies widely, with opportunities for job seekers still relatively robust in some segments of the labour market, and quite weak in others.&nbsp;<\/p>\n\n\n\n<p>One of the dividing lines is across regions: Generally, the larger the population centre, the lower job postings stand compared to early 2020. Postings in Canada\u2019s largest three metros started falling before other regions, and a gap has remained since. Taken together, on December 6, job ads in the Toronto, Montreal, and Vancouver areas were down 15% from their pre-pandemic level. Conversely, postings in non-metro areas, while also substantially lower than their peak, remained up 26%. Other metro areas were in between, up 5%, albeit weighed down by large declines in Ontario metros like Ottawa, Kitchener-Waterloo-Cambridge, and Hamilton.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdQu-IGxOYnRF0ZKbah9ZiGy26u5x7nmD2gxzl8-drCtEHg9ttTYKuNZaErKjSza_C5TRRp4TSXGJQZy_75cdIEad696jh8a-_YyN1tAot-KkIXakVCyBUTqaBddYEjfbTRxEkm?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled \u201cJob postings still elevated in less populated regions\u201d shows the change in Canadian job postings between February 1, 2020, and December 6, 2024, with different colours denoting job posting trends in small cities and non-urban areas, the largest three metros (grouped together), and other metros. While all segments are down over the past year, postings in less populated areas were still above pre-pandemic levels, while they were down substantially in the large three metros.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cJob postings still elevated in less populated regions\u201d shows the change in Canadian job postings between February 1, 2020, and December 6, 2024, with different colours denoting job posting trends in small cities and non-urban areas, the largest three metros (grouped together), and other metros. While all segments are down over the past year, postings in less populated areas were still above pre-pandemic levels, while they were down substantially in the large three metros.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>Contrasts are also evident between occupations. Grouping occupations tracked by Indeed into larger categories, postings across all major segments have retreated from their post-pandemic peaks. However, where they stand compared to early 2020 varies substantially. Healthcare stands out, with postings far above pre-pandemic levels, reflecting the sector\u2019s unique hiring cycle. Meanwhile, despite having cooled sharply, demand is still up somewhat in higher-paying fields like engineering, management, and a range of white-collar occupations, like banking and finance, insurance, and legal services (though accounting and HR are somewhat weaker).<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXfKUOffU5xaDD5d7HkGrTNnOH_3L3g5Vkrh4sDHZWAigZu-ihY9Rp6X-bVGYvgM1OhVZYMEcggx0J7AgUbXW8znB0PgWDPu4YW4Kwu-v5AzoMyaFm7li1hfLIAJKM8IHd77YLzRIg?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Lolipop chart titled \u201cPostings have cooled across the board, but some sectors weaker than others\u201d shows the change in job postings compared to February 2020 by occupational groups, as of their respective peaks, as well as December 6, 2024. Healthcare job postings remain furthest from their early 2020 levels, while arts and marketing, as well as tech-related occupations, are down most.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Lolipop chart titled \u201cPostings have cooled across the board, but some sectors weaker than others\u201d shows the change in job postings compared to February 2020 by occupational groups, as of their respective peaks, as well as December 6, 2024. Healthcare job postings remain furthest from their early 2020 levels, while arts and marketing, as well as tech-related occupations, are down most.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>On the flip side, postings in several occupational groups are below pre-pandemic levels, but by different degrees. Openings for blue-collar roles are down slightly from February 2020, though within this category, some sectors are faring relatively well (installation and maintenance). Others, like construction, are close to their pre-pandemic level, while manufacturing, driving, and loading and stocking are down.\u00a0<\/p>\n\n\n\n<p>Hiring appetite has dropped more in sales and customer-facing services (including retail, though food services has been a tad stronger), as well as marketing and communications. Job postings in tech, science, and math are also well below early 2020 levels, but unlike today\u2019s other relatively weak sectors, these fields experienced the greatest growth across all sectors during the 2021-2022 boom. Employer hiring appetite has cooled nearly universally since then, but conditions facing job seekers heading into 2025 are still different, depending on the types of jobs they\u2019re looking for, and what region they\u2019re looking in.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Immigration, and especially emigration, are key policy wildcards for the labour market<\/h2>\n\n\n\n<p>If recent policy announcements bear fruit, Canadian population growth <a href=\"https:\/\/www.canada.ca\/en\/immigration-refugees-citizenship\/corporate\/mandate\/corporate-initiatives\/levels\/population-growth-2014-2027.html\" target=\"_blank\" rel=\"noreferrer noopener\">is set to whiplash<\/a>, from a record two-year pace, to a sudden standstill in 2025. The Federal Government\u2019s planned reduction in future permanent residency admissions will play a role, but most of the shift is set to come from a plunge in non-permanent residents \u2014 including international students and workers with temporary work visas \u2014 who have been the main drivers of the recent increase.\u00a0<\/p>\n\n\n\n<p>Migration to Canada <a href=\"https:\/\/www150.statcan.gc.ca\/n1\/daily-quotidien\/241217\/dq241217c-eng.htm\" target=\"_blank\" rel=\"noreferrer noopener\">started to slow<\/a> in mid-2024, and Indeed data foreshadows a further shift to come. The environment has already changed substantially at the initial stage of the hiring process, when job seekers and employers connect on the Indeed platform. The share of clicks on Canadian job postings from abroad soared from about 6% of total clicks in early-2021, to more than 14% in mid-2023, but has since slid back to roughly 7% as of November 2024.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdmkki7whte39Pf46jhbOyAbtF9mWbJ0KjB5uYseQDDwBpZ3NlNdSIpQGlgkaTwIdJk47SXaKY3Y9CSBLuwFcFVhnTxSJmvxfSWWYvajf-EYPjm1MQizg1WHQHNjY6idtlN8BZ3XA?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled \u201cForeign job seeker interest has pulled back\u201d shows the share of clicks on Canadian job postings from job seekers located abroad, between 2019 and November 2024. After jumping between 2021 and 2023, the foreign click share has nearly fully reversed its earlier rise, standing at 7.1% in November 2024.\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cForeign job seeker interest has pulled back\u201d shows the share of clicks on Canadian job postings from job seekers located abroad, between 2019 and November 2024. After jumping between 2021 and 2023, the foreign click share has nearly fully reversed its earlier rise, standing at 7.1% in November 2024.<\/em><\/figcaption><\/figure>\n\n\n\n<p>This rise and fall in foreign job seeker interest occurred across occupations. However, many of the sectors with fastest increases in foreign job seeker footprint between Q3 2021 and Q3 2023 \u2014 like personal and childcare, cleaning and sanitation, driving, and retail \u2014 have seen some of the sharpest declines in foreign click share since, several by more than half. A number of these sectors employed increasing numbers of non-permanent residents <a href=\"https:\/\/www150.statcan.gc.ca\/n1\/pub\/11-631-x\/11-631-x2024006-eng.htm\" target=\"_blank\" rel=\"noreferrer noopener\">even prior to 2022<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXex52OENrrWg214OGumkK-sOb0qFn5gE3EHnQlO0OPZ19RGF5N_ccLdXf0xd_Cz7lhhyiGlM90pECMkKJFfp3V685RT6uIN63Ml-o-9d4oZoKCVnYEwffIh3B-iRvVGFeE-qvAyVw?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Scatterplot titled \u201cDrop in foreign job seeker interest was sharpest where it jumped most\u201d shows on the horizontal axis the % change of foreign click share from Q3 2021 to Q3 2023, while the vertical axis shows the % change of foreign click share from Q3 2023 to Q3 2024. Occupations like driving, cleaning and sanitation, and retail saw their foreign click share drop by over half over the past year.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Scatterplot titled \u201cDrop in foreign job seeker interest was sharpest where it jumped most\u201d shows on the horizontal axis the % change of foreign click share from Q3 2021 to Q3 2023, while the vertical axis shows the % change of foreign click share from Q3 2023 to Q3 2024. Occupations like driving, cleaning and sanitation, and retail saw their foreign click share drop by over half over the past year.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>But while the decline in foreign job seeker interest signals a change in where employers may find their next candidate, there\u2019s little sign it&#8217;s gotten tougher for them to fill job openings. Taken together, job postings for the occupations that experienced the sharpest drops in foreign click share since mid-2023 \u2014 such as driving, personal care and home health, retail, and cleaning and sanitation \u2014 experienced increased relative job seeker interest over the same period, despite less interest from abroad (i.e. their clicks-per-posting rose relative to the economy-wide average). This suggests that amid ongoing labour market weakness, domestic job seekers will likely offset some of the hiring challenges employers might face from new arrivals to Canada.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXf9siu3kW3i1b1kVYBJnob213WYqrkSUaSNMvP9UCJEZnviLXweaLPVQhlQCt8zsNazrcnRsr5CMEhXibv4VEzREiP5QpJw0QWpqcoHZOZrtZflLI4tOGK3KJJj_MyYcUHXV8Y?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled \u201cRelative job seeker interest is still up in sectors where foreign clicks have dropped most\u201d shows aggregate clicks per postings in occupations where the recent decline in foreign click share was especially sharp, relative to the economy-wide average, between 2020 and November 8, 2024. Relative clicks per postings in these roles dropped early in the pandemic, but since 2023 have trended back up, despite declining foreign job seeker interest over this period.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cRelative job seeker interest is still up in sectors where foreign clicks have dropped most\u201d shows aggregate clicks per postings in occupations where the recent decline in foreign click share was especially sharp, relative to the economy-wide average, between 2020 and November 8, 2024. Relative clicks per postings in these roles dropped early in the pandemic, but since 2023 have trended back up, despite declining foreign job seeker interest over this period.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p id=\"footnote4\">Instead of falling population inflows, the bigger wild card for the labour market in 2025 is the potential effects from rising outflows of non-permanent residents as work and study visas expire. The impact of these departures are abound with uncertainty, as there is limited up-to-date labour market data tracking non-permanent residents<sup><a href=\"#footnote1\">1<\/a><\/sup> and because the ultimate number of people that will leave is <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-12-04\/trudeau-s-immigration-plan-hinges-on-millions-of-people-leaving?srnd=homepage-canada\" target=\"_blank\" rel=\"noreferrer noopener\">up in the air<\/a>.\u00a0<\/p>\n\n\n\n<p>That said, these outflows will surely cause some disruption in the labour market. In lower-paying sectors with high employee turnover, the impacts might be relatively muted in regions where employer demand is currently weak \u2014 including Toronto and other cities in southern Ontario. However, employers might have to make greater adjustments in regions where job postings have held up better, including rural areas. At the same time, non-permanent residents, many of whom are in Canada on post-graduate work permits, are employed in jobs across the economy. There will likely be many cases where expiring work visas cause challenges for business operations, not to mention for the workers themselves.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Wage growth could cool after a strong 2024<\/h2>\n\n\n\n<p>Rising unemployment, falling job vacancies, and easing inflation suggested wage growth would slow in 2024. However, throughout the year, hourly earnings, as measured by the LFS and the Survey of Employment Payrolls and Hours (SEPH), continued to rise at a brisk pace. After adjusting for changing jobs-mix, wages in the LFS grew at around a 4% year-over-year pace for much of 2024, while pay gains in SEPH accelerated to over 5% during the third quarter. Wages also outpaced price growth, with inflation easing to 2% by October, and there were few signs that higher labour costs translated to materially higher prices at the aggregate level.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcWsjfGLfQvtPHcNPWQDu93Q0MKXEOB-5MhyRzVCx_HbbQX3oZ-SzL1B8J_Q12B-S0SEilw5z6r6YkmG5EqIrDR9O7vlmNCU30jj7B27RvLjyf4Jc5a4T7TryZ_I20mr3TLiHlxAg?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled, \u201cStrong year for wages despite weaker labour market\u201d shows year-over-year growth in composition-adjusted wages since 2019 according to the LFS and SEPH, compared to growth of the consumer price index. Wage growth remained relatively elevated in 2024, even as inflation cooled.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled, \u201cStrong year for wages despite weaker labour market\u201d shows year-over-year growth in composition-adjusted wages since 2019 according to the LFS and SEPH, compared to growth of the consumer price index. Wage growth remained relatively elevated in 2024, even as inflation cooled.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>Meanwhile, productivity \u2014 a key driver of real (inflation-adjusted) wages \u2014<a href=\"https:\/\/www150.statcan.gc.ca\/n1\/daily-quotidien\/241204\/cg-c001-eng.htm\" target=\"_blank\" rel=\"noreferrer noopener\"> continued to decline<\/a>. Real wages rose despite falling output per hour worked, because the labour share of national income rebounded further from its low point during the 2022 surge in inflation. A combination of cost-of-living pay increases and perhaps the lingering effects from earlier labour market tightness appears to have helped paychecks to catch up to the surge in business profits that accompanied the earlier jump in prices.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdDWVOkTUGy5fcUa2cFOKWevXiF75i5-SL2RV5-2_M_9a7iwW3OKzkQRFhJTzXXEquxKR4nsuHpFEtexjAcIo75UJfxPROS88Qvrk1cmfcRSTtKf-3klsHhj2G8cmcct7R1rIdk7w?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled \u201cLabour share rebound boosting real wage growth\u201d shows employee compensation as a share of net domestic product between 1980 and 2024 Q3. The labour share of income has increased recently, but was also revised lower, meaning real wages had more room to grow before the share historically elevated levels.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cLabour share rebound boosting real wage growth\u201d shows employee compensation as a share of net domestic product between 1980 and 2024 Q3. The labour share of income has increased recently, but was also revised lower, meaning real wages had more room to grow before the share historically elevated levels.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>Room for this catch-up process appeared to be dwindling by early 2024, but recent <a href=\"https:\/\/www.bnnbloomberg.ca\/investing\/2024\/11\/07\/gdp-revisions-show-canadas-economy-growing-at-faster-pace\/\" target=\"_blank\" rel=\"noreferrer noopener\">upward revisions<\/a> to Canadian GDP growth between 2021 and 2023 meant the labour share of net domestic product wasn\u2019t as elevated as initially reported. Nonetheless, history suggests that real compensation growth and productivity growth can only diverge for so long. As of Q3 2024, the labour share had reached levels rarely seen outside of recessionary periods, which could mean a slowdown in wage growth is coming.\u00a0<\/p>\n\n\n\n<p>There are already signs that wage growth is easing. Headline hourly pay in the <a href=\"https:\/\/www.hiringlab.org\/en-ca\/2024\/12\/06\/november-labour-force-survey-unemployment-jumps-on-higher-participation\/\" target=\"_blank\" rel=\"noreferrer noopener\">November LFS<\/a> rose at its slowest year-over-year pace since 2022. While one month is too soon to declare a trend, employers on Indeed have also recently been less aggressive in the wages and salaries they post that are meant to attract job seekers. Year-over-year growth in the Indeed Wage Tracker averaged 3.0% over the three months through October, its slowest pace since late 2021. If slower growth for offered wages translates into the paychecks of new hires, it\u2019s a likely sign of where the broader labour market is heading.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXetb4loGugVvlL4F02KWYAWwyOthsGRunQtOfllkelQGuLXxbWtbAHPTuNydu1JR2xr7jMNGb3LfEt8VB0mBuAwJ6TvhYyJXvx-CoTPJqk0L11BVUIqGwvD7avYGVGvzzvRxpj1?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line chart titled \u201cPosted wage growth has been trending lower\u201d shows year-over-year growth in posted wages on Indeed job postings between March 2019 and October 2024. Posted wage growth slowed to 3.0% on a 3-month average basis in October, its slowest pace since the end of 2021.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cPosted wage growth has been trending lower\u201d shows year-over-year growth in posted wages on Indeed job postings between March 2019 and October 2024. Posted wage growth slowed to 3.0% on a 3-month average basis in October, its slowest pace since the end of 2021.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>While economy-wide wage growth might cool, there\u2019s also potential for different dynamics across different occupations and sectors. One factor could be further strength in public sector wage growth as collective bargaining agreements reset. Despite <a href=\"https:\/\/x.com\/BrendonBernard_\/status\/1854927286039953507\" target=\"_blank\" rel=\"noreferrer noopener\">picking up in 2024<\/a>, wage growth among public sector employees has lagged private sector employees since 2022.\u00a0<\/p>\n\n\n\n<p id=\"footnote5\">Meanwhile, the government\u2019s immigration policy changes could also impact the distribution of wage growth. The LFS and SEPH show different patterns in how wages of lower-paying occupations\/industries have fared compared to the economy-wide average since Canada\u2019s population surge began in 2021.<sup><a href=\"#footnote2\">2<\/a><\/sup> However, neither survey suggests the same degree of pandemic-era wage compression <a href=\"https:\/\/www.nber.org\/digest\/20235\/pandemic-related-shifts-low-wage-labor-markets\" target=\"_blank\" rel=\"noreferrer noopener\">seen in the US<\/a>, and Canada\u2019s rapid growth in non-permanent residents could be one reason why.<sup><a href=\"#footnote3\">3<\/a><\/sup> If the ranks of non-permanent residents drop in 2025, there could be greater pressure on employers in lower-paying sectors to hike wages to attract workers, though it remains to be seen if broader economic conditions will necessitate it.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Generative AI is changing tech jobs, but rarely mentioned in other job postings<\/h2>\n\n\n\n<p>Roughly two years since the introduction of ChatGPT and other generative artificial intelligence (GenAI) models, usage of GenAI tools continues to grow throughout the labour market, though their application is far from ubiquitous. As of the third quarter of 2024, <a href=\"https:\/\/www150.statcan.gc.ca\/t1\/tbl1\/en\/tv.action?pid=3310087801\" target=\"_blank\" rel=\"noreferrer noopener\">10.6% of Canadian businesses<\/a> said they\u2019d be using some form of artificial intelligence to deliver products and services over the next year, surely higher than years prior, but still a minority of firms. A similar trend is evident in job postings. In November 2024, 0.25% of job postings explicitly mentioned any of a basket of GenAI-related terms in their descriptions, more than double the 0.09% share from a year earlier, but a small overall presence.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXfwMrbdS0pM_cerZDFZl6U4icxT_VxgWQ-4UIsV7r4r6UJ0c1QBHAzTfieZXF3PQGecWq5WVBtMveLI-IMerJkeILMnBtuNT7AdrpOsStMSI1-7b5bDKFPWztFzPfnXai7qJG3zew?key=hdaebZqVHFcyP_eHppyoOlWf\" alt=\"Line graph titled \u201cGenAI mentioned in a small but growing share of postings\u201d shows the share of Canadian job postings mentioning GenAI-related terms in their job descriptions between January 2023 to November 2024. As of the end of November, 0.25% of Canadian job postings mentioned GenAI, more than double their share a year earlier.\u00a0\" \/><figcaption class=\"wp-element-caption\"><em>Line graph titled \u201cGenAI mentioned in a small but growing share of postings\u201d shows the share of Canadian job postings mentioning GenAI-related terms in their job descriptions between January 2023 to November 2024. As of the end of November, 0.25% of Canadian job postings mentioned GenAI, more than double their share a year earlier.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>So far, mentions of GenAI are primarily found in tech-related job postings. In late 2024, GenAI was mentioned in 2.4% of job postings in fields including software development and mathematics, a sizable presence given how new the technology is. But, outside these fields, the share was just 0.1% of postings. This suggests that despite <a href=\"https:\/\/www.hiringlab.org\/2024\/09\/25\/artificial-intelligence-skills-at-work\/\" target=\"_blank\" rel=\"noreferrer noopener\">the potential application of GenAI across wide areas of the labour market<\/a>, its adoption remains relatively limited outside of the tech sector. Nonetheless, while scaling up the use of cutting-edge technologies has historically been a challenge in the Canadian economy, the steady growth in postings mentioning GenAI highlights how the trend remains in its early stages.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Summing up<\/h2>\n\n\n\n<p>The job seeker\u2019s market that emerged in the wake of the pandemic has steadily eroded over the past two years, and a turnaround will require a break from current economic trends. A few factors on the horizon could, in fact, change the situation: The drag from earlier Bank of Canada rate hikes will likely start waning, while slower population growth will mean fewer people entering an already struggling labour market (though rising outflows of non-permanent residents will also cause disruption). At the same time, a potential upheaval to Canada-US trade adds a new dose of uncertainty that won&#8217;t help near-term prospects. This could mean more of the same to kick off 2025, including a challenging environment for job seekers overall, though not one without opportunities for those in the right regions and occupations.&nbsp;<\/p>\n\n\n\n<p id=\"footnote1\">\u00a0<sup><a href=\"#footnote4\">1<\/a><\/sup>Public LFS data doesn\u2019t provide any information on the types of jobs non-permanent residents work in (and potentially undercounts their ranks), while the most recent alternative data published by Statistics Canada is from 2021.<\/p>\n\n\n\n<p id=\"footnote2\"><sup><a href=\"#footnote5\">2<\/a><\/sup>Since 2021, hourly wages of low-wage private sector occupations in the LFS have grown slower than average, but low-paying industries in SEPH have grown similarly to the headline trend.<\/p>\n\n\n\n<p id=\"footnote3\"><sup><a href=\"#footnote5\">3<\/a><\/sup>\u00a0<a href=\"https:\/\/www.theglobeandmail.com\/business\/article-the-great-resignation-its-not-happening-in-canada\/\" target=\"_blank\" rel=\"noreferrer noopener\">Canada\u2019s lack of \u201cGreat Resignation\u201d<\/a> is another potential factor.<\/p>\n\n\n\n<p><strong><em>Methodology<\/em><\/strong><\/p>\n\n\n\n<p><em>All job postings figures in this blog post are the index of seasonally adjusted Canadian job postings on Indeed re-based to February 1, 2020, using a seven-day trailing average.&nbsp;<\/em><\/p>\n\n\n\n<p><em>The number of job postings on Indeed, whether related to paid or unpaid job solicitations, is not indicative of potential revenue or earnings of Indeed, which comprises a significant percentage of the HR Technology segment of its parent company, Recruit Holdings Co., Ltd. Job posting numbers are provided for information purposes only and should not be viewed as an indicator of performance of Indeed or Recruit. Please refer to the Recruit Holdings investor relations website and regulatory filings in Japan for more detailed information on revenue generation by Recruit\u2019s HR Technology segment.<\/em><\/p>\n\n\n\n<p><em>Occupations including when calculating relative job seeker interest among sectors where foreign clicks have dropped most include: Childcare, Security and Public Safety, Retail, Loading and Stocking, Driving, Cleaning and Sanitation, Personal Care and Home Health, and Construction.<\/em><\/p>\n\n\n\n<p><em>To calculate fixed-weight wage growth in the LFS, we bucket LFS microdata for each of the 43 occupation groups into three levels of job tenure (6 months or less, 7 to 24 months, and 25 months and over), and recalculate headline average wages into a composition-adjusted measure by holding their respective weights constant at February 2020 levels.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Something will have to change for the Canadian labour market to avoid a year of disappointment.<\/p>\n","protected":false},"author":103,"featured_media":14559,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"recruiter-hub-blocks.php","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[1],"tags":[608],"post_mwm_category":[715],"post_topic":[],"post_content_type":[],"post_duration":[],"post_actions":[],"post_franchise":[],"post_mwm_author":[670],"class_list":["post-14556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-multimedia","post_mwm_category-state-of-the-labour-market","post_mwm_author-bbernard"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Indeed\u2019s 2025 Canada Jobs &amp; 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