Canada Knows How To Ball (or Does It?)
Hello and welcome back to the Recruitonomics Newsletter! This week, we’re looking at the labor market in Canada, which might be reversing its downward course or pulling off a very good head fake. Plus, we explore the best labor markets in the United States’ history. Read on!?
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This Week on Recruitonomics:
Full-Court Press or Fast Break For Canada’s Labor Market?
In March, Canada’s labor market lost 2,200 jobs, potentially showing signs of a labor market recession. This may have been a “head fake” (to use a basketball term) as last month job growth surged to 90,000 new jobs, a stunning reversal. This boosts the three-month average for job gains to above 40k, a sign that demand for hiring is still as robust as it was in 2023. Last month, we noted the labor market’s warning lights flickered yellow, signaling a possible slowdown. This month, the light hasn’t switched completely to green, but it remains far from red. Nearly all the job growth last month was concentrated in the services sector, led by professional and business services adding a surprising 25,500 new jobs, after losing nearly 20,000 the month before. Accommodation and food services and healthcare also had impressive gains.?
What does this mean for recruiters??
The 90,000 new jobs is a promising sign that Canada’s labor market is more robust than previously thought. Recruiting for healthcare and service workers will continue to be competitive, while roles in tech and marketing are facing less pressure as younger Canadians are looking to break into the field as they finish their degrees in the spring.??
Read the full article here.
When was the Best Labor Market for US Workers?
The U.S. economy has seen a spectacular recovery from the COVID-19 pandemic. Economic growth has outpaced most other advanced economies by a substantial margin. The labor market has also recovered well from the economic recession that coincided with the lockdowns in the first year of the pandemic. Employment in the U.S. is exceeding its pre-pandemic peak by about 5.5 million. Last year alone, more than three million jobs were added, an average of nearly 300,000 net new non-farm payroll jobs each month. Given the high pace of job creation together with a record streak of low unemployment, people have been wondering whether this is the best labor market ever for workers. When we dive into the data, we see that this is in fact a great labor market for workers – but not quite the best. There’s one era in U.S. history that featured strong real wage growth and enviably high labor force participation. Can you guess what it is??
What does this mean for recruiters??
When we talk about the best labor market for workers, that might worry some recruiters, as it usually means more difficult recruiting conditions. However, full employment is a great thing: It benefits both workers and the economy as a whole. There is some evidence that during periods when the bargaining power of workers is improving and wages are rising, companies tend to introduce more labor-saving technology (automation). This in turn feeds into long-run economic growth and improvements in wages and living standards. A rising tide lifts all boats and everybody wins!?
Read the full article here.
Recruiting Tips:?
Ever been curious about what a day in a life looks like for Appcast’s experts in Customer Success? Meet Jared Becker, a senior account manager at Appcast, who works hard to get candidates in the funnel and smiles on our customer’s faces! This video gives a bit of insight in the work that goes into Appcast’s solutions.??
Recently on Recruitonomics:
The labor market came in below expectations in April, adding 175,000 net new jobs compared to consensus expectations of above 200,000. This is by no means a weak report, however – gains were still strong, the unemployment rate increased just slightly to 3.9%, and labor force participation picked up for prime-aged workers. The gap between supply and demand continues to narrow. The unemployment rate of 3.9% continues the streak of 4%-or-below unemployment. One interesting tidbit in this report is the surprises in the industry breakdown, which once again saw healthcare adding jobs at a healthy clip. However, other high performers wobbled slightly, while the usual laggards surged ahead, like transportation and warehousing. This is a trend to watch in the months to come: It could suggest a different hiring market for recruiters.
Read the full article here.
Spain was one of the European economies that struggled heavily in the aftermath of the Great Recession, plateauing in growth for several years. With the European Union’s austerity measures, it took the country more than a decade to fully recover. The COVID-19 recession was even deeper but the recovery was rapid, with the economy back to full-force by the end of 2022. Now, it is one of the strongest economic performers in Europe, with GDP some 4% higher than pre-pandemic and economists forecasting even further growth in the years ahead. The services sector is doing particularly well thanks to a boom in tourism, and strength is widespread across the economy, with growth in information and construction along with other key sectors. However, Spain’s economy still faces some challenges, including high youth unemployment, long-term unemployment, and housing shortages contributing to an immobile workforce. Spain is outperforming other European countries, but it still has issues it needs to resolve if it would like to continue to maintain a strong economy.?
Read the full article here.
What Recruitonomics is Reading:
It’s nearly college graduation season! This month, swaths of new workers will join the labor market after years of education – but what are they about to find? Economists at Revelio Labs look into the labor market fundamentals that will determine the difficulty of a college graduate’s job search, including demand for entry level jobs by sector and by state, Plus, what are these upcoming graduates looking to see in their careers compared to years past? Read the full piece, Fantastic First Jobs and Where to Find Them.?
?More Data & Insights:
Thank you for reading! Stay tuned for next week's Recruitonomics Newsletter and check out Recruitonomics.com for more data-driven insights.