Photo: Nathan Denette, The canadian Press
A report by CIBC points out that the canadian job market has seen an increase in the average wage in 2017.
Toronto — The job market in canada is even better than suggested by the news, according to a new report by capital Markets, CIBC.
In addition to having created, in 2017 more than 420 000 jobs a larger proportion of well-paid jobs, the canadian job market has also recorded an increase in average wages. The deputy chief economist at CIBC, Benjamin Tal, also points out that the unemployment rate declines more rapidly in young than in adults. Today, the ratio of unemployed young people compared to unemployed adults is only slightly higher than 2 %, a rate lower than the long term average.
Statistics Canada reported last week that the unemployment rate ended last year at its lowest level in more than 40 years. The creation of jobs in 2017 has been the most robust since 2002. Mr. Tal believes that the labour market is well positioned to face future challenges, such as increasing the minimum wage and the ongoing negotiations of the free trade Agreement, u.s.-canada (NAFTA).
On the issue of the minimum wage, it is unlikely that the companies are able to avoid the increases in outsourcing their workforce more mobile to provinces where wages are lower. The cost increases could, however, accelerate the pace of automation, stressed the president of the Canadian labour Congress, Hassan Yussuff. Even if the relocation could result in short-term benefits, the minimum wage will continue to increase across the country, he stressed.
According to Joseph Marchand, of the Department of economics of the University of Alberta, the trend towards automation could accelerate, with the addition of atms, electronic terminals for ordering in the restaurants and cases in self-service in grocery stores. “It’s happening because the technology is growing at a constant rate, which makes the capital less expensive year by year. So, if you have a sudden change in the costs of labour, this will only speed up this process. “