Roughly 1 in 5 Canadian employers anticipate cutbacks in first quarter of 2023
![Post-pandemic hiring outlooks still moderate](https://cdn-res.keymedia.com/cdn-cgi/image/f=auto/https://cdn-res.keymedia.com/cms/images/ca/126/0405_638380077573173919.jpg)
Canadian employers expect steady, yet moderating, hiring in Q1 2024, according to First ManpowerGroup’s Employment Outlook Survey for 2024.
The survey of over 1,000 employers reveals that 41% intend to increase their staffing levels in the first quarter of 2023, while 16% anticipate cutbacks, resulting in a net employment outlook of +25%. This is down 2% from Q4 2023 and -8% year-over-year.
“Even though the Net Employment Outlook has decreased 2% since last quarter and -8% year-over-year, hiring expectations remain positive for all regions and all industries. The net employment of +25% closely aligns with the global average (+26%),” said to Darlene Minatel, Country Manager, ManpowerGroup Canada.
The survey also found that the strongest hiring is anticipated in the Northern Territories with a net outlook of +34%. Meanwhile, the weakest outlook is expected in Ontario at +23%. All regions are expecting muted hiring compared to last year at this time.
The net employment outlook for each region is as follows:
- Northern territories: 34%
- Atlantic Canada: 30%
- Prairie: 30%
- Quebec: 27%
- Western Canada 25%
- Ontario: 23%
Additionally, the talent shortage continues to persist and impact employers, with 80% of those surveys reporting difficulty in finding skilled talent, which is a 10-year high and is above the global average of 75%.
Most in-demand skills, sectors
The top five most in-demand skills are IT & data, operations & logistics, sales & marketing, engineering, and administration/office support, and as companies adopt more sustainable practices, employers estimate at least 46% of all technical skills will need to evolve to keep pace with the green transition.
Finance and real estate is the sector with the highest projected net employment outlook at +35%. This is followed by energy and utilities (+33%), health care and life sciences (+29%), consumer goods and services (+29%), information technology (+29%), industrials and materials (+28%), communication services (+22%), and transport, logistics and automotive (+21%).
The next survey will be released in March and will report hiring expectations for the second quarter of 2024.