Despite the countless headlines about layoffs, a lot of companies appear to be looking at the purported economic slowdown as an opportunity.
Many of the layoffs around the Ottawa area for example, have spurred new startups or the expansion of existing enterprises, said Michael Darch, of the Ottawa Economic Development Corporation (OED).
While it is true some large companies have announced big layoffs, a survey recently conducted by the OED of companies in the Ottawa area, revealed the smaller companies have been eagerly scooping up castaways so much that unemployment levels are relatively unchanged from last year.
“We still have a relatively consistent employment base,” said Darch.
There is a lot of doom and gloom out there, but that is because in many instances companies are obligated to report layoffs and not when they are hiring people. And so what isn’t being reported is that “the startups are rubbing their hands because they are able to pick up good people.”
Ottawa underwent a remarkable growth surge during the high-tech explosion of the late ’90s and into 2000. With some of the biggest players in the high-tech game, like Nortel, JDS Uniphase and Cisco, setting up shops there, and $1-billion in venture capital being invested in the region in 2000, the city earned the moniker Silicon Valley North.
The region continued to grow even after the high-tech melt down and massive layoffs at Nortel and JDS Uniphase, said Darch.
Apparently Ottawa isn’t the only area in the country that continues to grow.
Staffing firm Manpower Inc., recently completed a broad survey of Canadian employers and found that 37 per cent plan to add workers in the third quarter of this year and just seven per cent plan to decrease staff.
“What the survey is saying is that the job market is still good,” said Steve Walker, vice-president of Canadian operations for Manpower.
That contrasts sharply with findings in the U.S. where hiring activity is on the decline. Employers in the U.S. are much more cautious, said Walker.
Notably, the Manpower survey showed the durable goods sector, including technology firms, had one of the most pessimistic outlooks, with only 28 per cent of firms planning to increase staff, while 10 per cent expect layoffs. Wholesale and retail trades anticipate a record increase in hiring for the third quarter.
“Everybody keeps getting surprised as retail and employment numbers come out because there is no drastic downturn,” Walker said.
The job market was extremely tight — even going into 2001 — and smaller companies were having so much difficulty hiring the people, that they are only now finding the talent they wanted. Even with the layoffs, most companies are still having a really difficult time finding well-seasoned senior executives.
And when layoffs are deemed necessary, firms are being more selective about who they let go and how they do it.
Wounded high-tech giant Nortel, which was still recruiting heavily on university campuses last fall, had to retract a number of job offers to students. However they also gave the students payouts of $1,000 or more and provided them with outplacement services such as resume writing and career building assistance.
Other factors in other sectors are also contributing to keep the labour market tight in the Ottawa area, added Darch.
The federal government is starting to hire again, preparing for a surge in retirements. During the height of the growth boom in the region, a lot of hospitality and service jobs were left unfilled as people moved into manufacturing. “What we are finding now is that they are returning to service sector,” he said.
Most people are looking at the bad side of things, said Darch. “But this isn’t a recession, it is a slowing of growth. I’ve managed companies through three recessions and it is a lot different than this.”
Many of the layoffs around the Ottawa area for example, have spurred new startups or the expansion of existing enterprises, said Michael Darch, of the Ottawa Economic Development Corporation (OED).
While it is true some large companies have announced big layoffs, a survey recently conducted by the OED of companies in the Ottawa area, revealed the smaller companies have been eagerly scooping up castaways so much that unemployment levels are relatively unchanged from last year.
“We still have a relatively consistent employment base,” said Darch.
There is a lot of doom and gloom out there, but that is because in many instances companies are obligated to report layoffs and not when they are hiring people. And so what isn’t being reported is that “the startups are rubbing their hands because they are able to pick up good people.”
Ottawa underwent a remarkable growth surge during the high-tech explosion of the late ’90s and into 2000. With some of the biggest players in the high-tech game, like Nortel, JDS Uniphase and Cisco, setting up shops there, and $1-billion in venture capital being invested in the region in 2000, the city earned the moniker Silicon Valley North.
The region continued to grow even after the high-tech melt down and massive layoffs at Nortel and JDS Uniphase, said Darch.
Apparently Ottawa isn’t the only area in the country that continues to grow.
Staffing firm Manpower Inc., recently completed a broad survey of Canadian employers and found that 37 per cent plan to add workers in the third quarter of this year and just seven per cent plan to decrease staff.
“What the survey is saying is that the job market is still good,” said Steve Walker, vice-president of Canadian operations for Manpower.
That contrasts sharply with findings in the U.S. where hiring activity is on the decline. Employers in the U.S. are much more cautious, said Walker.
Notably, the Manpower survey showed the durable goods sector, including technology firms, had one of the most pessimistic outlooks, with only 28 per cent of firms planning to increase staff, while 10 per cent expect layoffs. Wholesale and retail trades anticipate a record increase in hiring for the third quarter.
“Everybody keeps getting surprised as retail and employment numbers come out because there is no drastic downturn,” Walker said.
The job market was extremely tight — even going into 2001 — and smaller companies were having so much difficulty hiring the people, that they are only now finding the talent they wanted. Even with the layoffs, most companies are still having a really difficult time finding well-seasoned senior executives.
And when layoffs are deemed necessary, firms are being more selective about who they let go and how they do it.
Wounded high-tech giant Nortel, which was still recruiting heavily on university campuses last fall, had to retract a number of job offers to students. However they also gave the students payouts of $1,000 or more and provided them with outplacement services such as resume writing and career building assistance.
Other factors in other sectors are also contributing to keep the labour market tight in the Ottawa area, added Darch.
The federal government is starting to hire again, preparing for a surge in retirements. During the height of the growth boom in the region, a lot of hospitality and service jobs were left unfilled as people moved into manufacturing. “What we are finding now is that they are returning to service sector,” he said.
Most people are looking at the bad side of things, said Darch. “But this isn’t a recession, it is a slowing of growth. I’ve managed companies through three recessions and it is a lot different than this.”
