Talent Market Insights - July 2024

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Welcome to our latest newsletter! This edition features in-depth industry reports, expert articles, practical resources, and recommended reads. Designed to drive organizational excellence, empower your team, and help leaders navigate talent management while assisting job seekers in navigating the landscape. Discover the latest trends, gain valuable insights, and access tools to inspire success in your role.

?? Key Indicators ??

Canadian Employment:

• Employment Rate: Employment Rate in Canada decreased to 61.10% in June from 61.30% in May of 2024. Net employment fell by 1,400 from the previous month, a sharp contrast with expectations of a 22,500 increase. (Statistics Canada)
• Unemployment Rate: The unemployment rate in Canada rose to 6.4% in June of 2024 from 6.2% in the earlier month, the highest since January of 2022, and surpassing market expectations of 6.3%. The number of unemployed people rose by 42,000 from the previous month to 1,400,000, particularly due to increases in unemployment for the youth (+0.9pp to 13.5%) and core-aged men (+0.2pp to 5.6%).?(Statistics Canada)
• Interest Rate: The Bank of Canada cut its key interest rate by 25bps to 4.75% in its June 2024 meeting, as expected, and signaled that more rate cuts are to be delivered should inflation continue to slow as expected. (Bank of Canada).

U.S. Employment:

• Employment Rate in the United States remained unchanged at 60.10% in June.?(U.S. Bureau of Labor Statistics)
• The Unemployment Rate rose to 4.1% in June 2024, the highest since November 2021, up from 4% in the previous month and surprising market expectations, which had forecasted the rate to remain unchanged. (U.S. Bureau of Labor Statistics)
• Interest Rate:?The Federal Reserve left the Fed funds target range steady at 5.25%-5.50% for a 7th consecutive meeting in June 2024, in line with forecasts. (Federal Reserve Board)

?? The Market in Brief ??

Compensation & Benefits

• A survey by Express Employment Professionals-Harris Poll reveals that increasing minimum wages in Canada is prompting 19% of businesses to consider more automation/AI, while 17% may decrease employee hours, and 14% each contemplate workforce reductions or increased outsourcing.

Employee Experience

• Recent studies reveal significant mental health challenges among workers in North America, with 1 in 5 workers in the U.S. having been bothered by thoughts about self-harm or death in the past two weeks, while 1 in 4 in Canada, highlighting the need for more personalized mental health support from HR departments.
• Dayforce's new report reveals a significant disconnect between executives and frontline workers, with 83% of executives claiming to understand frontline challenges but only 62% of workers agreeing, highlighting the crucial role of managers in addressing the complexity crisis facing the frontline workforce.
• The ADP Canada Happiness@Work Index shows an increase in worker happiness as summer begins, but rising living costs are causing many to cut back on vacation plans.

Recruitment

• Software giant Amdocs is preparing for another wave of layoffs affecting 5%-10% of its 29,000 employees, which is approximately 1,500-3,000 jobs.
• Corus Entertainment reported a significant net loss and declining revenue in Q3 2024, leading to further cost-cutting measures and layoffs, with plans to cut about 300 more jobs by the end of August.
• Magic Leap is undergoing significant layoffs, affecting about half of its workforce, just months after announcing a partnership with Google.
• Telus has informed approximately 150 Ontario call centre employees that they must relocate to Montreal by October, apply for another role, or accept layoffs as part of a larger reorganization affecting around 1,000 call centre workers across Canada.
• More casual workplaces are becoming permanent, giving companies that adopt them a competitive advantage, according to a survey by Express Employment Professionals and Harris Poll.

Learning & Development

• Ontario is investing nearly $700,000 to help over 200 insulation workers upgrade their skills and secure jobs through a new training program, which includes hands-on experience and job placement support.

Diversity, Equity & Inclusion

• Microsoft laid off its DEI team after pouring millions of dollars into the initiative, becoming the latest major company to ditch the “woke” policy.
• A study found that the gender pay gap in Canada's tech sector nearly tripled from 2016 to 2021, with women earning about $20,000 less than men on average.

?? Monthly Reading Picks ??

"The Ideal Team Player: How to Recognize and Cultivate the Three Essential Virtues" by Patrick M. Lencioni

This book offers a compelling fable that illustrates the three essential virtues—humility, hunger, and people smarts—that make an ideal team player. It's a practical guide for leaders looking to build cohesive, effective teams and is highly recommended for anyone in leadership or HR roles.

"Leadership BS: Fixing Workplaces and Careers One Truth at a Time" by Jeffrey Pfeffer

Jeffrey Pfeffer's book challenges conventional leadership wisdom and provides a more scientific approach to understanding leadership and career development. It offers practical advice for improving management and workplace dynamics, making it a valuable read for HR professionals and leaders aiming to create better work environments.

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