Agilus Blog

Canada’s October Labour Market: A Mixed Bag for Employers

Written by Agilus Work Solutions | Nov 13, 2024 8:39:15 PM

The latest Statistics Canada Labour Force Survey for October 2024 presents a labor market that remains relatively steady yet hints at structural shifts beneath the surface. Employment did not meet expectations but grew modestly by 15,000 positions (+0.1%), holding the unemployment rate at 6.5%, nearly a 34-month high. However, the slight dip in the employment rate to 60.6% signals that job creation is lagging behind the rapid pace of population growth, suggesting challenges in job quality and accessibility. For Canadian employers, this backdrop emphasizes the need to offer meaningful, well-paid roles that attract and retain top talent, setting businesses apart in a competitive hiring market.

Youth Employment Shows Signs of Recovery

Employment among males aged 15 to 24 grew by 25,000 (+1.8%), offering a glimmer of hope for young male job seekers who have faced challenging labor conditions. While this increase reflects improved opportunities, employers should seize this momentum by investing in training programs and creating pathways for long-term growth to attract and retain this talent segment. Conversely, older female workers saw employment decline by 15,000 (-0.8%), a reminder of the importance of inclusive policies, flexible work arrangements, and continuous development programs to prevent valuable experience from exiting the workforce prematurely. The prevalence of ageism as Boomers look to push back their retirement is a missed opportunity for employers looking for qualified, engaged and dedicated candidates where talent pools are tight.

Where Jobs Are Growing and Declining

Business, building, and other support services led the month’s growth, adding 29,000 positions (+4.2%). This robust demand may signal opportunities for companies operating in this sector to capitalize on growth through targeted hiring and strategic investments. On the flip side, finance, insurance, real estate, and rental/leasing sectors shed 13,000 jobs (-1.0%), underscoring the need for businesses in these industries to carefully manage workforce resources and pivot strategies to stay competitive. Employers should stay attuned to industry trends and foster adaptability to ensure workforce stability and retention during these shifts.

Labor Force Participation

The labor force participation rate fell to 65%, its lowest since 1998 (excluding pandemic years), despite record population growth. This decline, particularly among young men and core-aged women, could impact Canada’s long-term talent pool availability and economic stability. Employers are encouraged to implement inclusive and flexible strategies to boost engagement, whether through hybrid work arrangements, tailored development initiatives, or targeted outreach to marginalized groups.

Navigating an Evolving Labor Market

As the  Canadian labor market continues to evolve, staying proactive and adaptable is key for employers seeking to attract and retain top talent. Craig Brian, CEO of Agilus Work Solutions, emphasized, “Given the evolving labor market dynamics, Canadian employers must adopt flexible and inclusive strategies to attract and retain diverse talent pools. Fostering supportive work environments that align with the unique needs of various demographic groups will be critical to navigating these shifts effectively.”

Additionally, broader economic signals, such as potential aggressive interest rate cuts hinted at by Tiff Macklem, Governor of the Bank of Canada, suggest that employers should remain vigilant and agile to changes that could influence economic factors, market demand and labor availability​.

Preparing for Tomorrow’s Workforce Challenges

Navigating Canada’s evolving labor landscape requires agility, adaptability, and inclusivity. Employers must prioritize meaningful work opportunities, foster diverse and supportive environments, and remain alert to broader economic signals that could shape the job market. By doing so, they can stay ahead of emerging trends, technology innovations, retain valuable talent and thrive in a complex and ever-changing economy.

Lead your organization into the future with strategic workforce solutions. At Agilus, we offer customized recruitment strategies that empower businesses to achieve their goals. With nearly five decades of experience, our nationwide team of experts combines data-driven insights, an engaged network of over a million candidates, and an in-depth understanding of the Canadian market to ensure our clients and candidates succeed in today's dynamic job market. Ready to experience the impact of a total talent solutions partner? Let’s get to work!