Canada’s once tight labor market, a key driver of wages and shelter costs, is loosening. Statistics Canada (Stat Can) data reveals job vacancies declined further in Q3 2023. The drop is a double-edged sword: roles being filled is good news, but job creation is failing to keep up with population growth. Canada is adding roughly 2 workers for every job filled, which will quickly transition a tight labor market to one with excess labor in a short period. Expect unemployment to rise and wage growth to fall if this trend persists.
