Job growth to slow to an average 1 per cent in the year ahead: BMO
Job growth to slow to an average 1 per cent in the year ahead, equal to approximately 15,000 jobs per month
One-half (51 per cent) of Canadians are confident in their overall job security, according to BMO Bank of Montreal. Furthermore, while 28 per cent of 1,501 people surveyed said they think their employer will be growing and hiring more employees this year, 21 per cent have concerns when it comes to their job security.
"Our research shows that while Canadians are cautious about how the economic recovery may affect their current job situation, many are optimistic about business expansion and see their company hiring in the coming months," said Cathy Pin, vice-president of commercial banking at BMO Bank of Montreal.
Job growth is expected to average one per cent in the year ahead or about 15,000 jobs per month, according to BMO Economics, which is enough to make a small dent in the unemployment rate, leaving it at around seven per cent one year from now.
"The Canadian labour market has performed admirably, recovering all the jobs lost during the recession by January. The unemployment rate is currently 7.2 per cent compared to a recession-high of 8.7 per cent. So far this year, employment growth has averaged two per cent annualized or about 28,000 jobs per month," said Michael Gregory, senior economist at BMO Capital Markets. "Additionally, the lofty loonie is forcing many Canadian companies to focus on improving productivity to lift their competitiveness."
Regionally, the most confidence is found in Alberta, where 69 per cent feel comfortable about their overall job security, found BMO. Quebec comes next at 56 per cent, followed by Manitoba and Saskatchewan at 55 per cent, Ontario at 47 per cent, British Columbia at 46 per cent and Atlantic Canada at 43 per cent.
