Why is interest in Canadian jobs down 40 per cent?
Foreign job seekers’ interest in Canadian employers took a plunge in the first quarter of this year following a surge in 2023, according to a report.
The share of clicks on Canadian job postings on Indeed made by job seekers outside of Canada was 8.6 per cent of overall job seeker activity in March 2024.
That number was down 40 per cent from 14.4% in Q3 2023.
Despite that, the foreign click share remains above the 6.5% rate that prevailed from 2019 to 2021, according to Indeed.
Clicks from job seekers from abroad on Canadian job postings in the third quarter of 2023 was more than double their six per cent share in mid-2019, Indeed previously noted.
Largest declines in foreign job seeker interest
“The drop in foreign job seeker interest since mid-2023 has been quite broad-based,” says Brendon Bernard, Indeed senior economist.
“Among the 29 countries where job seekers comprised at least 0.1% of clicks on Canadian postings in mid-2023, the click-share fell over the next two quarters in all but Australia, which was flat.”
Source: Indeed
Between Q3 2023 and Q1 2024, the share of clicks from abroad going to job postings in child care, loading and stocking, cleaning and sanitation, retail, security and public safety, and personal care & home health all fell by more than 45%, reversing most (though not all) of the gains made over the prior two years, note s.
“On the flip-side, while still substantial, the decline was not as sharp in areas like tech, where increases in earlier years weren’t as dramatic,” he said.
The labour market in Canada is expected to continue cooling in 2024 but will hold up better compared to previously downturns, according to TD Economics.
Why was fewer jobseekers interested in Canada?
Numerous factors may have played a role in the decline of foreign job seeker interest in Canadian job posting between the third quarter of 2023 and March 2024, according to Bernard.
“[The trend] comes off a year of exceptional population growth, driven by soaring ranks of non-permanent residents from abroad. However, the situation has changed quickly,” he says.
Source: Indeed
Canada became a less attractive destination for foreign job seekers because of a weaker labour market and strained housing affordability, he says.
Also, the lowering of the weekly work-hour limit for international students “probably had an immediate effect” while the federal government’s stated intention to reduce the number of non-permanent residents in Canada “suggests obtaining a temporary work permit could also be more difficult in the years ahead,” says Bernard.
“The broader labour market impacts of lower population growth will probably be gradual. It will likely shake up the recruitment landscape in the lower-wage sectors that frequently employ non-permanent residents. But whether it substantially impacts employer’s ability to hire will depend on how the overall economy evolves amid a slowdown in international migration.”
